Finance and Markets

Sun (Auckland), Volume II, Issue 546, 26 December 1928, Page 10

Finance and Markets

BIG INCREASE IN FINANCE NATIONAL MUTUAL ACCOUNTS The accounts of the National Mutual Life Association of Australasia, Ltd., for the year ended September 30, show that another satisfactory year’s business was done, the increase in business written being. £1,573,132. Altogether 20,728 new policies 'were issued, assuring £9,807,845; these figures compare with 16,850 policies assuring £ 8,234,713 in the previous year. Since its foundation the association has paid in claims £20,621,055, and under policies current it has an amount assured of £75,633,321. The new annua! premiums on the policies issued during the -term amount to £363,805, against £317.224; and single premiums were £608,079 against £374.828 Death claims at £732,784 compare with £675,212, endowment assurances matured were £726,552 against £638,234, and endowments matured were £198,213, against £154,888. Total claims of £1,657,549 contrast with £1,468,334 in the previous year. The premiums received on policies totalled £3,381,342, and interest and rents, after deducting £52.416 for rates and taxes, amounted to £1,549,048. The income of the organisation from all sources was £4,930.596. and the addition to the assurance fund was £2,441,177. making its total £29,147,330. SOUND MEAT INQUIRY SALES IN LONDON “There is a better demand for wethers and the outlook is much brighter.” says a cable to the Bank of New Zealand from its London ofHce. The ewe market is firm,, adds the cable, and an upward tendency is evident. The lamb market is steady and moderate business has been done. There are sufficient supplies of beef and the demand has improved slightly. Range of prices: Wethers, light 6d to 7d per lb; heavy, 5d to 6d: ewes, 4d to sd; lambs, twos! 9id to 93d; eights, 9£d to 9£d; fours, 9d to 91d; seconds, 7id to 8d; ox hinds! 4}d to 43d; fores, 3Jd to 4d: cow hinds 4d to 41d; fores, 3Jd to 3gd. N.Z. PRODUCE IN DEMAND HIGH PRICES IN LONDON New Zealand dairy produce continues to bring high prices on the London market. Producers are satisfied that the sales to date have been well above the ordinary, and say that such high rates are remarkable- during the season of maximum production. All the week-end cables to exporters describe the market as firm. Another profitable season is expected by producers and exporters. No slackening in the market is anticipated and all stocks are being absorbed rapidly. Amalgamated Dairies, Ltd., received the following cablegram from their London manager:—Butter: Our prices unchanged, finest, 186 s; market very firm. Danish, 212 s spot, 198 s fob Deliveries of New Zealand 1.622 tons, stock 2,133 tons. Retail prices unchanged Cheese: Prices unchanged: white, 9Ss. coloured 995; market continues slow. Retail prices unchanged The Bank of New Zealand received the following cablegram from its London office as at the close of business last week: —Butter: Steady: 182 s to 186 s. Cheese: Ouiet: white, 97s to 98s; coloured. 99s to 100 s.

ABNORMAL INFLATION HOW NEW YORK ’CHANGE COLLAPSED The cables a fortnight ago gave brief particulars of the sensational break in the dominant stocks on the New York ’Change. A correspondent gives the following report on the position: Collapsing under the weight of the heaviest selling ever concentrated within a two-hour Saturday session on the New York Stock Exchange, 3,749,000 shares changed hands, the correspondent states, and stocks of all varieties and descriptions lost in excess of two billion dollars in open market value, the Radio Corporation of America being the heaviest loser, with a 72 point break, the International Harvester Co., with 61J coming next, and losses of from live to 50 points being generally spread over the list. How badly thousands of speculators who indulged in the so-called Hoover market have been hit can be seen from the fact that 50 leading stocks have dropped in excess of 22 dollars a share since the high market set in on November 30. The general prosperity of the year for Wall Street is indicated in an estimate that 100,000,000 dollars will be distributed in bonuses to the staffs of the banks and brokerage and security houses during the Christmas season. It is known that one firm will pay a bonus of two years’ salary to employees. Profit-taking operations, as a sequel to an extended move of buying, would soon get prices tumbling, and weak holders would be shaken out rapidly as the reaction developed in an overbought market. The share market has served as an outlet for excess credit in the United States for several years now.

THREE QUIET MARKETS WOOL. TALLOW AND HEMP No briskness is reported in the markets for wool, tallow and hemp in England, in a cable to the Department of Agriculture. The cabled advice, dated December 22. says: Wool.—The Bradford market is quiet with no general buying of either tops or yarns expected until a new basis is established. Quotations are nominally unchanged, but the position favours buyers. Tallow. The market is very quiet, with poor demand at auction. Present quotations for spot are: Mutton, fine , 6d 46s a cwt; fair to good, 41s bd to 4os; dark to dull, 38s to 38s 6d. beef, sweet and/or mixed. 42s to 46s to good. 39s 6d to 425: dark to du 5i s tc 37s 6d - Mixed, fair to ?7 o< k',i 39S t 0 41s 6d: dark to dull. 37s to 37s 6d: gut, etc., 35s 6d to 37s 6d. . ? !^ np ' }' he Manila market is quiet but firm; fair business has been done’ Shippers offerings are small and closing values “J” grade, January, March shipment, was £3B os. The Sisal market is firm with somewhat more trade inquiry. No. 1, December-February *S'ln n^K ntS ' ln deman d at £4O 10s to A 40 los: sellers, £4l; No. 2 less in dU ’7‘ nominally £3 B 10s. New Zeak“! d . ?® tter deman d, but business is restricted as shippers have advanced follow ™V bu >-ors are unwilling to Fpbni’iri Llosmg values, December - shipments, highpoints. £36 to £36 10s; fair, £33 to £33 10s: romj*o. n '3, £IV° S; tOW * N °- 2 10 s.

THIRD IN SIX MONTHS ANOTHER INVESTMENT TRUST Another investment trust company known as the Australian General Investment Trust, Ltd., is in course of formation. This is the third flotation of the kind within the past six months, and it is obvious that the vogue of the investment trust is growing n the Commonwealth. The objects of the new trusi are the same as those of companies formed in other parts of the world, that is, to handle the money for small investors, so as to give them the advantage of an interest in many different stocks. The advantages of the system over that of individual investment are that capital is spread over a greater range of securities by co-opera-tive investing giving a greater margin of security. Although investment trust companies have been operating in the United Kingdom for half a century, they have entered the field of public finance in Australia and New Zealand only recently, A Melbourne firm. J. B. Were and Son, has been satisfying the remarkable inquiry for information on investment trusts with a booklet. It set? out the purposes and the results of oundly managed investments. The first company to conduct investment trusts in Australia and New Zealand started in July, and is already making a second issue of 250,000 ordinary shares of 5s each. The earliersubscribed capital of £125,000 has a - ready been invested. JUTE AGREEMENT SHAKEN Large profits earned by the fins* holding a monopoly in India in th°jute market have been an incentive to the forthcoming of more capital f° r the industry. Three new mills have lately beer built, but the erection of the new f» c ‘ tories has shaken the agreemnt whicj existed to work 54 hours a week ontf and not to increase loomage. Mills in Europe, especially in Germany, have been increasing their duction, and, at a meeting in Calcutu on October 19, it was agreed to W' crease the Bengal jute production & an' outcome of the German action. At present a move is on foot amon c some of the big Indian millers to crease working time. One firm * : contending that nothing short of *** 81-hour week will meet the influx o. the new looms.