COMMERCIAL.

Star (Christchurch), Issue 19036, 3 April 1930, Page 12

COMMERCIAL.

CENTRAL RESERVE BANK BILL READ. CONTROVERSY EXPECTED OVER NEW PROPOSAL. (United Press Assn.—By Electric Telegraph—Copyright.) CANBERRA, April 2. A Bill to establish a central reserve bank was read a first time in the House of Representatives to-day. It is likely that it will cause considerable controversy. The bank will have an independent directorate, and include one representative of Labour. It will have a capital of two millions sterling, and complete control of note issue. It will be empowered to issue notes, buy and sell in the open market cable transfers, and buy and sell discount or rediscount securities. It will act as agent for the isstie of loans on behalf of the Commonwealth and the States and make advances to other corporations. It will buy, sell and deal in specie, but is forbidden from making advances against land or engaging in trade or purchasing shares in trading companies, or other banks. The private trading banks will be required to establish and maintain in the reserve bank’s reserves balances of not less than ten per cent of their demand liabilities within the Commonwealth, and five per cent of their time liabilities. Australian notes may be printed and issued in denominations of five shillings, ten shillings, one pound, £5, £lO or any multiple of £lO. The private banks will be required to keep a record and furnish a return of the bank notes in circulation.

NEW COMPANY TO HELP RATIONALISE INDUSTRY.

(United Press Assn.—By Electric Telegraph—Copyright.) LONDON, April 1. A new company, with the governor of the Bank of England as chairman, is being formed in connection with the rationalisation of industry. The banks and the leading finance issuing houses are providing the capital of five millions sterling.

WOOL MARKET SHOWS BETTER TONE ABROAD.

SYDNEY, March 25. Winchcombe, Carson, Ltd., report: Competition for Merino wool shows signs of slight impfovemnt on the London market. The auctions have been in progress for a week. Evidence, however, favours the opinion that the sheep’s staple has touched its bottom basis for the season. Current selling developments supply the most cheerful indications seen at any series in the English centre for a year. They should help in creating confidence for the purchase of the balance of the Australian clip. Monetary developments abroad denote more favourable times for commerce generally. The Bank of England rate of discount is now 3$ per cent, which is lower than the average for the three years preceding the war. Cheaper money means more credit for business and usually produces a greater volume of trade. Cotton, which has been receding in value overseas for some time, has risen from 7!d to Sid per lb. At that figure it is 20 per cent to 25 per cent dearer than in 1914. Undoubtedly, at recent levels, wool is good buying provided circumstances , give consumers confidence in prices. It is a question of millmen feeling assured that it will not subsequently cheapen. Trade in the world may not have attained normal volume and it is certainly necessary for it to increase before rates* can rise to any decided extent. But. quite apart from the immediate condition of business in manufactures, the fact remains that millmen must buy wool to run their machinery. No manufacturer wants Idle machines, because he has no raw material. Plants must be kept occupied in order to earn interest on the capital invested in them. So far this season the sheep’s staple has only been purchased in hand-to-mouth fashion. Tops, yarns and textiles have also changed hands in similarly curbed volume. Once it is felt that “rock bottom ” in prices has been touched a buying movement will probably be seen in all sections of the industry. The current sales in London are likely to remove the stocks in that quarter and will rid the trade of a disturb’ng factor which has been in existence for many months.

Evidence of the degree to which ] manufacturers have kept their buying in check owing to market uncertaintv, is furnished by American figures. On December 31, United States millmen only had 147 million lb of wool on hand, the smallest total held for the past eight years. In February, turnover in tops in France brightened. As in Bradford, business in that quarter probably eased as the London wool safes approached. But the improved tone in that market should again induce purchasers of tops to place orders. Though we are not optimistic enough to consider that wool values will promptly show marked improvement, we are of the opinion that selling prospects are brighter. The sale of the remaining portion of the clip during the next four months looks assured. Some little time ago it looked possible that circumstances would compel some carry-over to next season. WOOL. SYDNEY SALES. (United Press Assn.—By Electric Telegraph—Copyright.) SYDNEY, April 2. At the wool sales the offerings totalled 9755 bales. There were sold 9505 bales and also 582 privately. There was the keenest general competition. The market closed equal .to the best point of the series for all classes of Merinoes, while there was a very good demand for : cross-breds. Greasy Merino made 18£d. MELBOURNE SALES. MELBOURNE, April 2. A feature of the wool sales in Melbourne during the week has been the 1 improved competition from practically : all sections of the trade. Ninety-eight per cent of the offerings were sold under the hammer. The top price yester- ' day was 142 d. The tone of the market • was again much improved to-day. GEELONG SALE. MELBOURNE, April 2. , At the Geelong wool sales the market ruled five per cent better than last month. The demand was active for : super wool. PORT OF LONDON AUTHORITY. : TWENTY-FIRST BIRTHDAY. -Captain A. W. Pearse, representative ; of the Port of London Authority, received the following cable message ■ from the General Manager on March 26: • “The Port of London Authority, on its ; twenty-first birthday, March 31, sends greetings to Australia and be.st wishes for an expansion of her trade which is sis s s® a s® a a®® gigi® si a

1 London, the port of the Empire, is ever 1 ready to facilitate.” . The Port of London Authority, under 1 i Act of Parliament, came into existence t on March 31, 1909, taking over the property, powers and duties of the Thames 1 Conservancy for the tidal portion of the s River Thames, of the Watermen’s Com- . pany in respect of registration of river , craft and the ‘privately owned London ’ and India, Surrey Commercial and Millwall Dock Companies. The sum of i £23,000,000 was fixed as the price. [ The Authority consists of an honor- . ary body of twenty-eight members, : elected every three years by Government and local authorities and payers ; of dues and charges. The Authority . must be self-supporting. It is neither subsidised by Government nor aided by : local rates. There are no shareholders; once the low fixed interest on the bonds * is paid, all profits go into improvements , and reduction of rates. Over £15,000.000 has been spent since 1909 in improve- " ments. i The following figures show the vast . increase in trade which has taken place since the Authority took charge:— Net Registered tonnage of vessels that ; used the port:—l9o9, 33,510,985 tons; 1929, 57,540,136 tons. Value in sterling of total trade of the port:—l9o9, £322,614,363; 1925, £692,730,143. COMPANY AFFAIRS. » MERCANTILE FINANCE ! CORPORATION, t • Tlie Mercantile Finance Corporation, , Ltd., has paid its preference dividend to shareholders for the half-year ended • March 31 at the rate of 7 per cent per . annum. KUALA LUMPUR CO. An increase in its output from 506 . tons of tin oxide to 762 tons enabled i Kuala Lumpur Tin N.L., Federated r Malay States, to increase its net profit from £35,745 in 3927-28 to £48,068 in . the year ended September 30, 1929. . Consequently the annual dividend was ; increased from 2s to 3s a share. Surplus liquid assets at the end of the term included £34,491 in cash. The table hereunder gives a comparison of leading items of finance and production for the last three years:— Year ended Sept. 30, I 1927. 1928. 1929. £ £ £ Net profit 34,379 35,745 48,068 D i v idends 20,040 20,040 30,060 Carried forward 53,897 52,116 67,789 Surplus assets 20,139 33,008 44,060 Average price tin oxide a ton £lB3 12s 9d £139 13s lOd £133 6s 6d > Yield, tin 5 tons 319 506 762 Ground 3 treated, 5 cub. yds. 777,991 *1,186,028 2,205,784 I 5 Yield a » cub. yd. 14£oz 15Joz 12Jozl 3 4, E! S) IS S S @ ® @ Si @ @ H @ ® SI H s H BUS

Net value a cub. yd. 15.04 d 14.31 d lid Total cost a cub. yd. 8.34 d 7.4 d 6.08 d * Second dredge installed. The reduction in the net profit a cubic yard of ground treated was due chiefly to the fall in the price of tin. Royalties paid to the Government of the Federated Malay States amounted to £15,749. The general manager reports that No. 1 dredge is in good condition, but will require a new bucket t ladder and pontoon dock during the en-» suing year. No. 2 dredge has given good running time, but it has entailed large expenditure for repairs, and will need constant attention for some time. New areas aggregating 723 acres were acquired during the year. No dividend was paid in January, and the board is unable to announce when distributions will be resumed. LAMPEH TIN COMPANY. Operations of Lampeh (Siam) Tin Mines N.L. for the year ended September 30, 1929, resulted in a loss of £10,126 after the provision of £7986 for depreciation. At the end of the term sundry creditors were owed £6959, and liquid assets amounted to £4457. The yield was 912 tons of tin oxide from 442,000 cubic yards of wash, compared with 85 tons from 425,000 cubic yards in the preceding year. From the beginning of October last to the end of February the dredge won 34J tons of tin oxide, valued at £3909. The values in an area to which the dredge was diverted were disappointing, and the dredge is being moved to the selected area through country which cannot be relied upon to cover working costs at the present low price of tin. If this price is not restored to a* satisfactory level in the near future, the directors of Lampeh intend to suspend operations at the mine until conditions are more favourable. CHANG PHRA COMPANY. At the annual meeting in Melbourne of Chang Phra Tin N.L., Siam, the chairman of directors (Mr R. F. Walker) said that there had been considerable delay in obtaining the surface rights over the company’s property, and that, therefore, no equipment had been installed. As the last exemption from the labour covenants had expired on March 23, forfeiture of the leases was threatened, but the general manager had reported that there was a possibility of letting the property on tribute to a neighbouring company The directors had notified the vendor that if he did not complete his contract with the company he would be held responsible for all losses incurred by Chang Phra. Air Walker added that the company did not have any other area in view. COURTAULDS, LTD. Although the competition of artificial silk has told against prices of wocl, companies engaged in the manufacture of artificial silk products have I suffered a considerable shrinkage in profits. This is due to the larger number of people engaged in the business, thus | intensifying selling pressure and the I general trade depression. One of the I largest companies in the world manuJ facturing rayon is Courtauld’s Ltd., of *& iH ® IS ® IS ES HI ® ES HI ID ® ® HI M HI S 3 E§3 S

London, which also controls the American Viscose Coporation and a number of subsidiary organisations. In 1928 the company earned a net profit on trading of £5,171,997, but for 1929 net income shows a decline to £3,743,828. Ordinary shareholders receive 10 per cent for the year, compared with 15 per cent for 1928 on capital which was doubled by a bonus issue of shares early iu that year. A sum of £1,651,856 is applied to writing down European Continental industrial investments. The 'dividends on both classes of shares require £2,800,000, and the carry forward is £686,687, against £1,394,716 brought down. No allocation is made to the reserve, whereas in 1928 the sum of £1,000,000 was allotted to that account. Some of the shares of the company are held by Australian Investors. MINING. MOUNT ISA MINES. The report of the manager of Mount Isa Mines, dated March 8, states: — Black Star Lode. Davidson Shaft, No. 1 Grizzly Level—No. 3 Glory Hole, rise to 122 ft. No. 5 Glory Hole—Crosscut advanced 13ft from N. drive. No. 1 Mining Level—N. drive to 111 ft and S. drive to 94ft from main crosscut. No. 2 Grizzly Level—N. drive to Soft and S. drive to 85ft from shaft crosscut. No. 3 Glory Hole—Rise to 60ft. No. 1 Main Haulage Level—N. drive to 24 7ft front main crosscut; S. drive to 235 ft. A motor-driven fan is being installed at junction of crosscut and drives to improve ventilation. Air Shaft (No. 46 Shaft) —To 229 ft and concrete lining • set to 224 ft. Supply Shaft—Plat cutting in progress and advanced to 58ft from shaft. Delayed by increase in water, which now averages 16,000 gallons an hour. Installation of electric centrifugal pumps in progress. Erection of motor-driven fan on surface completed, and fan now In operatic**-. Main Haulage Shaft—Shaft lining in \v. haulage compartment completed. Magazine Tunnel—To 177 ft from railway siding Operations suspended owing to a strike from February 26 to March 5. Diamond Drilling—No. 11a bore to 995 ft. Core shale with pyrites veins, and several bands of ore. Assays of core from 507 ft to 922 ft averaged 11.2 per cent lead. 11.1 per cent zinc and 5.60 z silver a ton. No. 5C Bore—To 533 ft; dolomitic shale with dolomitic veinlets. No. 1C Bore—To 1103 ft. Hanging wall of ore body cut at 993 ft. Core assays from 993 to 1018 ft, average 10.4 per cent lead, 2.6 per cent zinc and 5.80 z silver. No. ID Bore—ln dolomitic quartzite and slate, with veins of dilomite carrying pyrites. Mill Smelter and Power House Construction—Work proceeding. Rifle Creek Pipe Line —To 77,000 ft.