REFLECTIONS ON ’CHANGE

Sun (Auckland), Volume III, Issue 640, 17 April 1929, Page 10

REFLECTIONS ON ’CHANGE

MONEY AWAITING INVESTMENT SPECULATION INTERESTS QUIET By “NOON CALL” Two news items which should have more than usual interest to readers in this country have appeared in the Press over the 24 hours—Mr. Winston Churchill’s Budget Speech, and the announcement. that New Zealand’s exports for the financial year ended March 31, 1929, constituted a record. The one provides striking testimony Lu the tact tnat England, New Zealand's chief market, is well a ole to hold her own among foreign competitors, and that industrial expansion there is proceeding at a most satisfactory rate. The ocher adds to an accumulation ut evidence testifying to the fact that seldom have conditions in New Zealand been so favourable to a state of prosperity. Accumulated capital in the Old Country last year found un outlet in new capital issues, the total of £ 362,519,uuU in this respect only being exceeded in 1920 when a record totax ol £384,211,000 was raised. When the inflated currency of the earlier postwar period is considered, the figures for the past year stand out with greater prominence. In New Zealand, offering as it dues vast scope for enterprise, the rate uf industrial expansion is infinitesimal when compared with that overseas. Although there has been an increase in activity among company promoters during the past few months, most of that activity has been concerned either with financial adjustments to existing concerns, or in the promotion of more or less wild cat non-productive propositions. • Dominion Ready for Expansion of I ndustry That the Dominion is ready for a period of industrial expansion is shown in the big increase in fixed deposits held by the associated banks. it is not so mucli the comparatively high overdraft rates, as the lack of faith in many of the propositions brought forward that is holding back enterprise here, however. That the public will support sound industrial proposals was indicated in the ready response given to the recent call of the Amalgamated Brick and Pipe Company for debenture money. Demand for Gilt-edge Stocks On ’Change over the week steady trading has been recorded, with the speculative interests well in the background. Banks and insurances have been given more than usual attention, the market for scrip in the latter group, especially, having been forced to levels upon which the immediate return upon investment is well below that offering for Government and local body securities. At the moment the trend upward is held in check, and banks,, especially, show if anything, an easing tendency. Greater Faith in N.Z. Stocks A month or so ago interest in Australian industrials dominated the miscellaneous group. Recently the position has changed, and now New Zealand concerns showing prospects of increasing turnover are receiving more than usual attention. The market for all the better class New Zealand industrial and trading concerns is very firm. Coals and timbers are attracting most of the speculative interests, although activity in either section is not pronounced. Grey Valley Collieries show a firming tendency. The market for Hikurangis is quiet at the moment, but, despite the talk of further flooding at the mine, the scrip is worth watching, and. from the holders’ point of view, should not be sacrificed. Indications are that there is every prospect of the water trouble being permanently overcome in the near future. Return On Investment Below is a summary of sales made on New Zealand ’Changes over the week ended April 16, giving Pie return on investment based on f e latest dividend. In the case of Government and local ’body debentures, the returp includes redemption. The first column gives - the price at w#'ch the latest sale was made.

Latest Approx. Price. Return. £ s. d. £ s. d. BANKS— Aust. of Com. .. 1 15 10 4 9 4 Adelaide 10 « 6 4 16 10 Australasia 14 17 0 4 14 3 Com. of Australia . . 1 9 9 5 0 10 Ditto (pref.) .... 7 9 0 5 7 4 Com. of Sydney .. 27 15 0 4 11 11 National of N.Z. . . 7 19 4 18 9 Nat. of ’Asia. (ord). 19 11 6 5 22 Ditto (con.) .... 9 12 6 5 4 2 New South Wales 51 5 0 4 17 7 New Zealand 3 2 3 4 12 1 Union of Aust. .. 15 10 0 4 16 9 INSURANCE— National 0 16 6 4 10 11 New Zealand .... 2 6 9 3 18 3 Queensland 3 7 9 3 13 9 South British .... 3 6 0 3 13 3 LOAN AND AGENCY— Goldsbrough, Mort 2 3 9 5 11 S N.Z. Guar. Corp. 0 8 10 7 10 l j United Building 0 16 0 6 5 0 COAL— Westport Stockton .0 3 0 GAS— Auckland (ord.) .. J 4 3 6 11 11 Ditto (con.) .... 0 18 3 6 11 6 SHIPPING— Huddart-Parker .. 2 5 0 43;) Northern Steam (ord.) 0 15 0 7 14 8 Ditto (con.) .... 0 7 1 7 18 J WOOLLENS— Wellington 7 5 0 6 17 II TIMBER— Kauri 0 17 7 4 5 3 BREWERIES— New Zealand .. .. 3 2 9 3 3 9 Staples 259 594 Wards 2 5 3 (in liquidation) MISCELLANEOUS— Beath and Co 1 11 0 6 9 0 British Tobacco .. 2 8 0 4 11 8 Colonial Sugar .... 60 2 6 4 3 2 Dominion Rubber 113 0 Dunlop Rubber 1 8 6 5 5 3 Gear Meat 230 548 Electrolytic Zinc (ord.) 1 15 3 6 16 2 ♦Farmers’ Trading . 0 8 4 9 15 0 Milne and Choyce (deb. stock) .... 1 6 0 6 3 1 National Electric . . 0 8 3 N.Z. Farmers’ Fert. 116 5 11 7 N.Z. Refrigerating . 0 15 6 6 9 0 Sanfords (ord.) .... 0 18 9 7 9 4 Ditto (pref.) .... 0 19 0 7 4 5 Taranaki Oils .... 0 410 Wilsons Cement .. 2 1 4 16 11 Wellington Meat 0 12 6 Sharland and Co. . . 1 2 3 6 5 10 f MINING— Alburnia 0 l 10 Ohinmuri 0 8 5 Waihi 0 13 8 Kildare 0 3 3 Mahakipawa 0 10 Mt. Lyell 2 4 2 _ DEBENTURES— Auek. Har. Board. 1940, 5 h p.c 101 0 0 5 7 6 Ditto, 1939, 51 p.c. 99 2 6 5 6 10 Frank. Power Bd.. 6 102 10 0 A tick. Fire Board, 1939 6 P-c 103 10 0 5 10 9 Christchurch Trams, 1944, 3i p.c 100 10 0 5 9 0 N.Z. War Loan, 1933, P-c 101 5 0 5 211 Ditto. 1936. 51 p.c. 101 10 0 5 4 9 N.Z. Inscribed Stock, 1933, 5J p.e 101 5 0 5 2 II Ditto, 1936. 55 p.c. 101 12 6 5 3 9 Ditto 1938, 4i p.c. 100 0 0 4 10 0 N.Z. Breweries .... 1 6 5 7 12 6 ♦Assessed on the promised dividend of 10 per cent. tNo attempt is mad* to work out the return on profit-giving mining scrip. The sales are merely included in this list for record purposes-