COMMERCIAL.

Star (Christchurch), Issue 19817, 8 December 1919, Page 8

COMMERCIAL.

BANK OF AUSTRALASIA, ISSUE OP SHARES WITH PREMIUM CRITICISM EXCITED. The Bank of Australasia's announcement by cable of a now issue of 111,500 shares, in the proportion of one to four of existing holdim;s, at £7O premium (pay ,£UO in all) has excited criticism. The premium is looked upon as a Eery heavy one, and it is held that the issue will practically be of no benefit to shareholders, as the necessity f of finding so much cash will raj rely embarrass most of them, and tiinv cause a heavy temporary fall in the market. Seven years ago the bank announce! an issue for subscription early in 181:1 of 10,000 shires at £GO premium (rta.yi „y»JO in all). This meant (bat shareholders re charged iGOU.OOO premium for £400,000 of capital stock. The coming- now issue will raise the admitted capital on which shareholder* will receive interest to £2,500,000, but, it is pointed out, shareholders wilt have to find by instalments next year the big bum of £1,375,000. Of this •■CSbo.OOO will be premium, so that they will receive- interest on £500,000 only. The rate of 17 pert cent dividend on a portion of the money sub'cribed is rherofpre described us fictitious, as fbo real capital of tins bank will not be £2.5«0 000. but £3.973.100, and the true rate of dividend will be a fraction under ini nrr cent- It D hold that the announcement- of such a. high rate of dividnirl will cream a false impression, and afford un opening for crit'ci=m bv the enemies oi the present commercial system The fact (hat in the bank’s balance-sheet up to October 14. 1918, bank premises in Audi aha. Mew Zealand and Loudon are set down under tbo heading of as-ots at the surprisingly low figure of £18,793 18s 8d is also unfavourably comrnented upon. THE EXCHANGE RATE, fly Telegraph—Press Association—Copyright Australian and H.Z. Cable Association. (Received December 8, 8.55 a.m.) WASHINGTON, December 4. The decline of the exchange rate for the pound sterling is attributed to «. genera,l belief that the United States Government will not assist in tho stabilisation of exchange.

Sale reported— Christchurch Gae. £5 14a. OTHER EXCHANGES, [Prp Press Association.] AUCKLAND. December 8, Sales reported—Huddort-Paikcr, -tSs 9d; Milne and Choree, 27s 3d. DUNEDIN. December Sales on 'Change—Hmldart Parker, -IS,: New Zoalar.fi Re.frigßHO.iuy; 'coni, ata; X t ,v ■-.i./id litrdwia Uwd.;, I**

STOCK EXCHANGES • Following arc the latcat quotations Buyers, Sellers. £ e d i: s d DEBENTURES— N.Z. Govsnimorit 4J per (.out Bonds, PJtK .... N.Z. Government Insurance ... BANKS— Australia . 95 0 0 ,U 0 0 ] 32 0 0 Commercial o( AustiftHo. .... 3 2 0 Union of Australia . 1!'. 0 0 n o 0 INSURANCE— Standard LOAN AND AGENCY— • Goldabrough Movt. (Melbourne! SHIPPING— Huddart-Pwkor . 5 10 •3 G 0 A 3 G 2 10 0 Union (5 nor omit cum proiA 3 1 4 COALTaupiri 0 IT G AVostport i n Wcstport-Stocktott (3 ■per cent, non cum prof.i . . _ . Alt Tor Imho Collier; 0 10 5 o ra e WOOLLENSKainooi ft 0 0 9 8 0 GAS— Christchurch 6 U 0 BREWERIES— Crown . * . 5 IS n Maiming . • • < 0 0 CEMENTS— Golden Bn.v MTSCELLANKOUSColoma.1 Sugar . 0 It) r> as (i 0 N.Z Drug Co. N.Z. Paper Mills 2 IS ft 1 10 (1 1 u J, AA'hitromhc and Torata MINING— Talisman 7 0 0 0 10 (i AA’aihi 2 U 0