FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 636, 12 April 1929, Page 10

FINANCE & MARKETS

Ample Investment Money What Banking Returns Reveal By “Xoon Call’’ THE release yesterday of the banking returns for the March quarter gave one of the surest indications of the trend of money throughout New Zealand noted for some time.

Fluctuations Price movements shown by sales on ’Change over the past 24 hours when compared with the price at the time of the previous reported sale include: Taranaki Oils, fall of Id. N.Z. Breweries, rise of Sd. Farmers’ Trading, fall of 3d. Wilsons Cement, rise of 3d. JSanfords, Ltd (ord.), rise of 6d. The reason for the tightening up of the market for gilt-edge stocks is shown in the big increase in private deposits. It indicates also the lack of faith of a large section of the community in sound investment stocks, in the fact that they prefer the low rate of interest offered by the banks to investments available on the open market. Business on 'Change over the past 24 hours has been brisk, with all the better class securities meeting a steady demand. A feature of the market has been the heavy trading in banks, most shares in the section receiving attention on a very firm market. New Zealand Guarantee Corporations are receiving greater attention and sales were put through in Wellington > *»sterday at 8s lid and 8s lOd. compared with Os 3d prior to the payment of the interim dividend. Buyers offered Ss 8d on the Auckland ’Change this morning. In coals, the better demand for Waipas is maintained, and sellers at

12s 9d this morning were firmly supported by buyers at 12s. In the miscellaneous section Farmers’ Trading, following no doubt the impression that the company is meeting with more difficulty than was first expected in getting off its issue of shares which were to replace the debenture issue, are slightly easier. The ordinaries are still meeting with a steady demand at 3d above par, however. The upward movement in Sanfords, Ltd., continues, and the ordinary shares were dealt with at ISs 3d this morning, the market closing with more wanted at that figure. A statement as to dividend is expected at an early date from this company. Business yesterday afternoon. — New Zealand Breweries (deb.). 26s 4d; New Zealand Breweries, 635; Farmers’ Trading Company (ord.), Ss 3d: Taranaki Oils, 5s 3d and 5s 4d; Wilsons Cement, 41s. Business this morning.—On ’Change; Northern Steam, 15s; Sanford, Ltd. (ord.). ISs 3d. Reported: Bank of Adelaide, £lO 6s 6d; Bank of Australasia, £l4 14s; Commercial Bank of Australia (con.), £7 9s; Bank of New Zealand, 62s 3d. Business at mid-day.—On 'Change: Waihi Mining 13s 7d. Reported; Alburnia Mining, Is lOd; Commercial Bank of Australia, 29s 9d; Bank of New South Wales. £sl 2s 6d; Bank of New Zealand, 62s 3d; Taranaki Oil, 5s 2d.

TO-DAY’S QUOTATIONS

SOUTHERN EXCHANGES YESTERDAY’S SALES Press Association Wellington: New Zealand Guarantee Corporation, Ss lid, Ss lOd; Bank of New Zealand, 62s 3d; New Zealand Insurance, 17s; New Zealand Breweries, 625, 62s fid, 62s 7d. Colonial Sugar. £6O (two parcels); Wilsons Cement, 41s, 41s 3d. Christchurch: Commercial Bank of Australia, 29s lOd; Union Bank of Australia, £ls 10s (two parcels). £ls 10s fid; United Building Society. 16s: New Zealand Breweries, 62s lOd; Mahakipawa, Is Id (two parcels); Goldsborough, iMort, 53s (two parcels). Dunedin: National Electric. Ss 3d, Ss (two sales); Taranaki Oil, 5s 4d. CHICAGO WHEAT (Australian and N.Z. Press Association) Heed. 10.0 a.m. CHICAGO, Thursday. Wheat.—May, 1 dollar 20 5-8 cents a bushel; July, l dollar 24 3-S cents; September, 1 d' ■ll.i.r L’fi 7-8 . on;.-.

RAILWAY EARNINGS BIG EXCESS OF RECEIPTS Press Association WELLINGTON, Thursday. The Railways Department’s working account for the four weeks ended March 2 shows an excess of receipts of £218,502, which is £67,072 more than in the corresponding period of last year. For the *lB weeks of the financial year the working profits have been £1,152,533 as against £1,105,824 in 1927-28, £1,332,435 in 1926-27, and £1,429,130 in 1925-26. The gross receipts during the four weeks covered by the latest returns were £771,940, and the expenses £553,438. The former shows an increase of £85,025, while the latter have increased by £20,953. i With these additions the gross receipts for 4S weeks were £7,455,365, and the expenses £6,301,532. The corresponding figures for last year were £7,257,791, and £6.151,977, so that receipts are £197,574 higher and expenses have increased by £149,855. Following is a summary of the results for 48 weeks, showing the net operating revenue from the North and South Island railways, and from miscellaneous services, compared with the corresponding firures for last vear:

FREIGHT AGREEMENT (Australian and N.Z. Press Association) WASHINGTON, Wednesday. An agreement between the members >f the United States and Australian Shipping Conference was approved by :he Shipping Board to-day. Under this, :lie participating carriers will meet from time to time to agree upon uniform height rates on the traffic from North Atlantic ports to Australia and New Zealand. Each party is free to increase or decrease the rates upon giving notice to _na oJhf*r liixaa.

N.Z. BANKING RETURNS CAPITAL ACCUMULATING BIG INCREASE IN DEPOSITS The steady accumulation of surplus capital in the Dominion as- the direct result of the improved markets for primary produce is strikingly indicated in the banking returns for the March quarter. Private deposits show an excess over advances of £8,985,751. The return shows that the amount of fixed deposits, since March, 1927, to £29,481,657 in the December period, averaged £29,605, 752 for the March quarter, a further increase of £127,095. Taking the three classes of deposits and comparing the figures with those for last year, the movements have been as follows: March, 1928. March, 1929. Increase Govt. £2,375,577 £2,564.439 £455,862 Free 24.452,151 25,736,743 1,254.592 Fixed 25,476,144 29,608,752 4,132,608 Totals £52,336,572 £58,209,934 £5,873,062 Distribution of Deposits The following tables show the movements in deposits held by the various banks:— FREE DEPOSITS

In 1925 free deposits exceeded fixed deposits by over <£9,000,000, while for the quarter just ended the fixed deposits exceeded the free deposits by nearly <£4,000,000. Since 1925 the free deposits have contracted by £4,000,000, while the fixed deposits have increased by £9,500,000 and it is only In the last two years that the increase has been most marked. It would seem that those with capital are either afraid to invest or can find no suitable investment and are content to obtain a small rate of interest and let their bankers do the investing - , but bankers are not finding: the task an easy one. Movement of Advances There has been a slig-ht increase in bank advances. The figures show an increase as compared with last year of £609,829, but not all the banks shared in this increase, for the Bank of New Zealand and Bank of New South Wales show decreases. The figures are:— ADVANCES

The discounts were less by £320.455 than they were a year ago. They totalled £1,184,440, compared with £1,504,895 in the March quarter of 1928. The relation between deposits and advances in the March quarter of recent years and the last four quarters has been

The note circulation shows a small shrinkage, compared with last year, the figures being: March, 1929, £6,970,894; March. 1925, £6,376,665.

HEAVY GRAPE HARVEST LOWEST PRICES FOR 20 YEARS The heaviest crop of grapes on record is at present being harvested in Auckland vineyards. Prices as a result are repored to be on the lowest levels for 20 years. Te Kauwhata. outdoor grown grapes, are coming forward in particularly heavy supplies and meeting with a very dull sale in the markets

MONEY IN TOURISTS

BOOKINGS FOR LAST YEAR Press Association WELLINGTON, Thursday. Passenger bookings at the tourist agencies for the year ended March 31 show that the Department of Tourist and Health Resorts took in cash £206,073, an increase of £16,349 compared with- the previous year. The bookings from the railways, the allied department, amounted to £71,292, an increase of £7,559. “It was only in 1911,” stated the general manager, Mr. B. M. Wilson, in a letter to the Prime Minister, “that the system of booking tours through Hew Zealand was established, and this information may prove useful when other people say we are not doing enough, and that they could do it so much better.” BETTER FOR FARMS

USE OF FOREST BLOCK (Special to THE SUN) PALMERSTON N., Thursday. A certain section of the neighbouring farmers has complained that the plantation at Karioi controlled by the State Forestry Department could be made* better use of as farming lands. It is stated that .an inspection of the land is contemplated by the Hon. G. W. Forbes, Minister of Lands and Agriculture. and the Hon. W. B. Taverner, Commissioner of State Forests. The area contains about 30,000 acres, about 700 of which have been planted, at a cost of £12,200, during the last two years. The Reform Government considered the question and decided that afforestation was advisable. RABBIT SKIN VALUES (Prom Our Oven Correspondent) WELLINGTON, Thursday. Dalgety and Company and the Loan and Mercantile Agency Company, Limited. report having held their first sale of I'abbitskins for the 1929 season today. There was a good attendance of buyers and prices generally were on a par with the rates ruling at the last Southern sales. The following is the range of prices:— Runners. 3Sd to a lb; suckers, to 272 d; light racks, 44d to 45id; prime racks, 46d to 46’»d; milky does, 304 d to Slid; dawny autumns, 46d to 50d; early autumns. 533 d to 54Jd: summers, 33d to 33’.d: springs. 32d to 35*d: winters, B's, "0d to 54d; fawns, 50Jd; hareskins, 37£d.

TRADE IN PRODUCE HEAVY SUPPLIES OF POTATOES OAT MARKET FIRMER Sun Office, 9 a.m. Potatoes have received the largest share of attention in grain, seed and produce circles over the week. "DEPORTS earlier in the week that there was a possibility of getting portion of the Southern crop into Australia, as a result of the Tasmanian floods affecting the crop in that State, caused a certain amount of excitement among Southern speculators. The forward market assumed a very firm tone. Yesterday morning, however, the position was back to normal, and tubers for April-May-June delivery were offered at £5 5s f.0.b., South Island ports. Heavy arrivals of Canterbury tubers came on the spot market over the week. The quality still gives rise to a certain amount of concern, as a big percentage of the arrivals, not properly matured, require iJicking over before placing in store. As a result there is an appreciable quantity of cheap tubers- about which have a bearing tendency on the market. Increased quantities of autumn-dug tubers from the Pukekohe district are coming on the market at the moment, helping to cut down the demand for Canterbury potatoes. Through store Auckland best quality tubers are quoted at from 7s 6d to 9s a cwt. Indications are that cheaper potatoes will be available in the near future. Further Rise in Onions The market for onions is very firm, showing an advance of 10s a ton on last week. A steady inquiry has set in from Sydney on a market considerably better than the Canadian one earlier in the season. On the spot, onions are quoted through store at up to 10s a cwt., with every indication that higher prices will rule in the near future. The better demand which set in for maize with the coming of the colder weather has been maintained, and stocks on the spot are reported to be comparatively light. Supplies are still obtainable at 5s 4d f.o.b. Gisborne. Wheat shows little movement. With a steady market in the South, through store quotations on the spot range around 7s 9d a bushel. Oats have firmed in the South, although spot quotations are unchanged at 4s 5d a bushel for B Gartons and 5s 7d rfor A’s. Algerians are still meeting with a steady demand from the country districts, with quotations fairly steady through store at 5s 9d a bushel. Chaff meets with a good demand at the moment, with prices unchanged around £9 10s a ton, through store. Bran and pollard are both in rather short supply, but early arrivals from across the Tasman should relieve the position. Bran is selling through merchants’ stores at £8 10s a ton; pollard at £lO 10s a tori. The demand for grass and clover seeds is rapidly dwindling away with the approach of winter.

CO-OPERATIVE PIG MARKETING WAIKATO COY’S GOOD SEASON Another very successful month, during: which 6,138 pigs wfere handled, is reported by the New Zealand Co-operative PigMarketing Association. “All pigs received to date this season are sold,” states the report, “and pools are being finalised as quickly as account sales come to hand. Indications are that the season will be a very satisfactory one, as prices have been firm both in the United Kingdom and New Zealand for some time. The demand for pig carcases this season has far exceeded the supply, and good sales in the United Kingdom, Australia and locally have had to be declined, owing to insufficiency of supplies.” CALL MONEY IN NEW YORK (Australian anil N.Z. Press Association) Reed. 10.0 a. ill. NEW YORK, Thursday. Call money was quoted at 9 per cent, all day to-day. MINING NEWS HAURAKI.—The manager wired vesterday: ‘Connection completed between rise from 400 level to drive from Tangye

Closing quotatoins at to-day’s mid-day Sellers. Buy ei £ d £ a BANKS— A list, of Commerce — 1 35 6 Australasia 14 15 < *om. of Australia . - 1 ft ft 1 ft 8 Ditto (con.) Ditto (pref.) 7 Knc., Scot. & Aust. National of N.Z. National of Australasia (con.) 10 New South Wales 51 5 New Zealand .. 3 3 Ditto, D. Mort . . Union of Australia 15 12 6 — INSURANCE — Aust. Prov. Assn. . ft 8 7 0 IK 1ft 7 0 « Queensland 3 8 ft 3 7 0 5 Standard — 3 4 3 LOAN AND AGENCY— Abraham and Williams (pref.) .. .. — 4 7 a « '.oldsbrough, Mort. . 14 0 13 0 Newton King (pref) ft X N.Z. and River Plate 1 12 o N.Z. Guar. Corp . 0 ft 1 0 X |8 X.Z. Doan and Merc. 130 0 127 ft Ditto (pref.) .. .. SO 0 0 N. Auck. Farmers’ Co-op (ord.) ft 3 Ditto, B (pref.) .. 0 11 6 0 s 6 COAL— Hikurangi 0 2 3 Ditto (pref. > . . . . n X 7 3 Ditto A (pref.) .. fi 4 ft T’ukemiro 3 6 6 0 IS 0 Ditto (pref.) .. .. 0 2 10 Taupiri 1 ft 1 ft K Ditto (pref.) .. .. 1 3 M'.iipa ft 12 ft 3 2 0 "W estport-Stockton . 0 1 1 0 7 Ditt«-» < pref.) 0 3 10 4 Grey Valley .. .. .. 1 3 (> 1 3 3 GAS— Auckland . . .. .. 1 4 4 1 4 0 Ditto (con.) .. -. ft IX K 0 IX 0 Gisborne 0 .13 0 1ft 6 Whangare i 0 15 0 — SHIPPING— Devonport Steam .. 1 4 3 1 5 6 Howard Smith 1 5 [Huddart-Parker . . 5 6 15 Ditto (con.) .. .. ft 7 7 P. and O. (def. Union Steam (pref.) — 6 TIMBER— IX ft 17 ft 1 National Parker-Lamb .. .. 0 WOOLLEN— Kaiapoi 0 1 4 6 ft 14 ft Ditto (pref.) .. .. — BREWERIES— C. L. Innes (pref.) — N.Z. Breweries — 3 - MISCELLANEOUS — Auck. Amuse. Park 0 3 0 — Aust. Iron and Steel (pref.) 9

all were:— Sellers. Buyers. Australian Glass 2 8 6 British Tobacco S 3 7 9 Burns, Philp .. . - Bycroft, Ltd 1 12 6 Checker Taxi 0 7 0 Colonial Sugar . . . . 60 7 6 Dominion Pictures . 1 Ditto (pref.) .. .. Donaghy’s Rope . . 1 13 Dunlop Rubber 1 6 1 Electrolytic Zinc 1 16 1 16 1 15 Farmers’ Trading . 0 Ditto A (pref.) .. 0 Ditto, B (pref.) . 0 14 Gear Meat Grey & Menzies Henry Jones Co-op. H.M. Arcade Theatre Ditto (pref.) -. .. N.Z. Drug 13 Lewis Eady (pref.) . — Milne and Choyce.. Ditto (pref.) .. .. 1 5 Ditto B (pref.) .. Ditto (deb. stock) N.Z. Farmers’ Fert. N.Z. Paper Mills . . 0 19 0 N.Z. Refrig, (con.) Robinson Tee Cream Thames Theatre .. Union Oil 2 6 Victoria Nyanza Whittome, Stevensons Wilsons Cement 2 J MINING — Alburnia (2s Sd pd.) 0 2 3 ft 1 6 Moanataiari (paid) . 6 Ditto (con.) .. . . Maoriland (con.) .. 5 — Occiden tal-L na — Waihi 7 Waihi Grand June. . — Mount Lyell 2 3 ° 2 “ DEBENT URES— Ditto, 1935, p.c. Auckland Harb. Bd. 5i per cent. Ditto, 5 p.c City of Auckland, 1940, 5i per cent. Ditto, 1943, p.c. 104 102 Hamilton Fire Bd.. 6 per cent 104 Bor. Mt. Eden, 6 p.c. N.Z. Breweries 1 6 5 6 ° GOVERNMENT BONDS War Loan. 193S, 4i 100 0 o 99 5 ft Ditto, 1933, 51 .. 99 0 ft Ditto, 1933, 5i p.c. 101 6 101 Ditto, 1936, 5J p.c. — 101 0 INSCRIBED STOCK War Loan, 1938. 4J 100 2 6 — Ditto. 1939. 41 p.c. 100 99 0 0 101 10 0 lot 0 0 Ditto, 1936, 51 p.c. 101 15 0 101 o 0

figures for last year:— 1 927-2S. 1028-29. crease. North Island .L 727,587 J2 748,146 £ 20,559 South Island 162,361 179,753 17,392 Miscellaneous 215,866 225,634 9.7 68 Totals £1 105,814 £ 1,153,533 £ 47,719

Bank Mar., 192S Max*.,1929. Increase X. Ze’l’nd <£11,502,643 £12,272,662 £770,019 Union 2,838,375 2,919,214 80,839 X.S.W. 2,589,491 2,766,998 177,507 A’s'tralasia 2,473,118 2,547,417 74,299 Nat’n’l 4,148,062 4,271,455 123,393 Commercial 930,462 95S.997 28,535 Totals £24,482,151 £25,736,743 £1,254,592 FIXED DEPOSITS Bank Mar., 192S Max\,1929. Increase X. Z'I’d £12,545,565 £14,622,324 £2,076,759 Union 2,827,472 3,450,484 623,012 X.S.W. 3,323.768 3,922,462 598,694 A’s’tralasia 2,207,672 2,610,S63 403,191 Xational 4,040,592 4,345,035 304,443 Commercial 531,075 657,5S4 126,509 Totals £25,476,144 £29,608,752 £4,132,608 The aggregates of the free and fixed deposits for the March quarter of the last five years are as follow: — March Quarter. Free Fixed. Totals. 1925 £29,765,517 £20,131,711 £49,897,228 1926 26,865,851 20,436,629 47,302,480 1927 24,440,778 21,088,034 45,528,812 1928 24,482,151 25,476,144 49,958,295 1929 25,736,743 29,608,752 55,345,495

Bank Mar., 1928 Mar.. 1929. ]ncrease TvT. Z’l’d £ 9,616,035 £19,240,355 £ 375,680* Union 5,277,741 5,376,078 9S.337 N.S.W. 5,878,206 5,788,360 89,846* A’s’tr’lasia 4,554,655 4,737,439 182,784 National 7,974,072 8,516,319 542,247 Com’rcial 1,264,766 1,516,753 251,987 Totals £ 44,565,475 £45,175,304 £609,829 ♦Decrease.

as follows Quarter. Deposits. Advances Excess. £ £ £ Mar., 1925 49,897,228 43,730,262 f6,166,960 Mar., 1926 47,302,480 4S,285,142 *982,662 Mar., 1927 45,528,812 50,800,808 *5,271,996 Mar., 192S 49,958,295 46,070,370 t3,887,925 June, 1928 52,947,133 45,426,955 +7,520,178 Sept., 1928 52,596,018 45,119,424 f 7,476,594 Dec., 192S 51,661,406 48,101,104 13,560,302 Mar., 1929 55,345,495 46,359,744 tS,985,751 fExcess of deposits. ‘Excess of advances.