COMMERCIAL.

Press, Volume LVII, Issue 17117, 12 April 1921, Page 7

COMMERCIAL.

THE WHEAT CROP. ITS TABDY DISPOSAL. "Wheat-growers are evincing some con* cern at the slow realisation of their crop. Tho latest official figures suggest a sufficiency for the year, if not a very fair surplus, and such being tho case there is no need for millers to buy beyond current requirements. There is a general belief.that millers are adopting this policy, but enquiries amongst them'Bhow that this is not generally tho case. The manager of ono leading local firm stated to a "Press" reporter yesterday that he had bought supplies seven or eight months ahead, and tho representative of another milling firm said that all the wheat being offered by brokers was being accepted. The foregoing is the position 60 far, but it could scarcely continue. The whole of t)he season's wheat was now—or would be in a few weeks—available for disposal, and millers could scarcely be expected to finance the whole output, particularly when there was no obligation on them to do so. Certainly the three-farthings per bushel por month storage would bo saved by them, but tihis would not compensate for the very largo amount of money involved in theso purchases, requiring, as they would, very substantial interest payments. Conditions of sale under control provirta for payment within ten days; in pre- . control days arrangements between seller and purchaser occasionally provided for payment wee-is 3nd sometimes several months ahead. Another factor tending to minimise, temporarily at any rate, tho millers purchasing power is the lack of shipping. One big vessel now in Lyttelton toarbour should have sailed some days ago with .flour for the North Island, and no fewer than eight vessels of one company's fleet had been held up in Auckland during tho strike, vessels which, in the ordinary course, would have been moving up t'he coast with flour aboard, if not actually unloaded at their destination. This flour is still at the mills, instead of the cash for it being at the bankers. The foregoing is the millers' case. The grower, on nis part, has grown tihe wheat tinder arrangement with the Government at a certain price. He is now prepared to deliver the goods, but there is no obligation for anyone to take them off his hands. In effect, both tihe grower and the miller have done their parts. With the bedrock prices of other farm produce, the farmer is urgently in need of his money. The delay in paying it might affect the area put in crop this year, as land cannot he prepared for nothing. Furthermore, growers might be tempted, should delivery be unduly delayed, to accept a penny or so a bushel less and sell the wheat as fowl feed and obtain the cash. In the aggregate, the slowing-down of purchasing by the millers mcaiiß a huge Bum to the producers. . The official tlnreshing. figures published yesterday * morning disoiosed, that up to March 21st an average yield of -33 bushels per abre had been secured. This is an advance of five bushels per acre on J ho preceding official estimate, and raises the probable total yield to about Oil million bushels. Allowing for a largalyincreased area of wheat being sown thi9 year, requiring additional seed to the extent, possibly, of 100,0(50 to 150,000 buflfhela. there should bo well over 6,000,000 bushels available for milling. At an average of 7s 3d a bushel, this means something over £2,000,000, which, excepting about £IOO,OOO to £160,000, goos to Canterbury growers. Such a sum, of course, is beyond the financing capacity of either millers or money-lending institutions these day*. The figures regarding yields published yesterday morning are not varied by later information. Enquiries' at the Wheat Controller's office elicited this foot. The information was that in North Canterbury" the yield was about the same, in South Canterbury and North Otago somewhat better, and in Mid-Canterbury lower. A very large area had been sown between the Rangitata and Rakaia, and all over the yield promised, when,the final threshing returns Were in, to be approximately tho estimate published as on Maroh 21st. The early season has resulted in much greater supplies being available than is usually the case «.fc tihis time of -year. The figures of threshings as on April 7th for the past three years are as follows (1920 figures being to April 19th.):— 1919 ... 643,000 bushels 1920 ... 1,048,313 bushels 1921 ... 1,920,000 bushels Another factor in the big threshing figured this year is that th* low price or oats has concentrated threshing on wheat. Witlh. no market for oats, they ore being left in the .stack. The position, as outlined above, is far from a satisfactory one from the farmers' viewpoint. They cannot contemplate with much equanimity the holding-up of tht> liayment of a million of money for any engtb of time, and this sum is orilv halt the value or the Canterbury crop. THE PRICE OF BUTTER. (PBESS ASSOCIATION TELEGHAM.) WiULUNGTOiN, April 11. Mr T. C. Brash, of the XNational Dairy Association, contradicts tno statements maae to tue Jf rimo jxiuuster by a recent deputation. »tie says tno statements are calculated to piejuaico tue prouum'B in tue eyes ot tue consumers. Anyone wiwi a Kmwieugo ot tuo lauts or the case can leou-smc** utat'tue proaucei's nave not ai<tuuij/i<eu to iiuto un uuiair auvantiijje ot Vue, piunic. iur ilrasn revues to the statements mauo. Jae says mat instead or the butter producers canning trie whole of tue maifcet value uuiuig the war, they were coinpelieu to aecepo tue coinmauueer price, wuich was _ below tne worm's uiax&et vaiuo. Tho Imperial Government made a profit of tour millions in two years on nauulng New Zealand butter. While tho Imperial Government made a loss of . 4j millions on the purchase at 2s 2d and the sale at Is 6id of cneese from England and Scotch producers the loss on the subsidy was largely made up by the promts on Colonial produce bought at prices below the world's maruet value. Even under the recent contract the Imperial Government did not undertake to pay the world's market price; thus local consumers not only did not pay the world's market value, but they did not pay the full parity of the Imperial Government's quotation, because the consumers here were subsidised by the Government to the extent of 6d per lb. As to the statement that dairy farmers engaged in supplying tho factories milked their cows for a definite period and that the cost of winter production really did not enter into tho question at all, Mr I Brash replies that the real fact in tho present case is that in the conferences and negotiations between the producers and the representatives of the Government, it was agreed that sufficient but- , ter for the local market could be made after April Ist on the understanding that the price would assure an adequato return to the producers. The consumers know well that the price of winter butter has been always naturallj higher than the summer price. On this occasion the producers, by agieeine to accept 2s 2Jd for bulk butter and 2» 4d for pats, are willing to take less than the summer figures, but they believe thnt they should not be asked to mak* a further reduction. Thev have pone ns far as they can be reasonably 1 expectec* to go. Consumers can surely see foi

■"■""■"""" 0674S themselves that the compulsion on pro-, facers to accept less than a fair price must react unfavourably on the consumers ultimately. If the producing industries are injured, the evil effects are quickly felt and suffered in the cities. THE WOOL TRADE. PAILTOB OF B.A.W.K.A. SA3UBS. . (Bv Cable—Press Association--Copyright.) . (Auatialian and : xi,£. Cabl* Association.) LONDON, April 11. The 8.A.W.8A. wool Bale fixed for Antwerp on April 22nd has been canThe' "Daily • Telegraph,'' commenting on the failure of the auction says:—. "It was evident from,- the .very, first what would happen.. The Association is now in' a worse position than -ever. It is high time Sir Arthur Goldfinch, Director of Raw and those co-operating with mm realised that iv is.useless to dictate to the trade, and that a combination representing almost exclusively ■ the growers' interest can never be successful. It is regrettable that the .wool interests have suffered so severely,'but that is the natural result of the operation of the law of supply and, deinand> The fact that bankers insist on the sale of free wool on which tljey have made liberal' advances indicates that the trade will continue to be adequately supplied with raw material.' • ■ • a : Sank mergeb.' . (By Cahle—Prase Asecioiation-Oopyright.) : C 'Tho Times."! (Received AprU llth.'S.S p.inj ■ ,■; LONDON, April U. . The .Peninsular and Oriental, Banking Corporation, Ltd., has acquired control of the Allahabad Bank, Ltd., FThe P. and ,0.. Banking Corporation, Ltd., was established last year, and has branches, $t principal, sear ■ ports in Australia Siid the East. Its capital is £5,000,000, (£lO shares. £4 paid lip). • The Allahabad Bank, Ltd., at Allahabad in 18657 has nineteen, branches and thirteen sub-agencies., in India. It has a capital of £200,000 (shares £6 6s 8d fully, paid), and a preserve fund of £3C)0,00b.; It paid a'dividend in 1919 >bf 18 per cent.] CUBAN BANK FAIXUBE. (Anstiilian and N.Z. Cable Association.) '■"•."■: ; r '."' HAVANA, April 9. The National Bank of Cuba hag suspended; payment. The failure, which totals 26,000,000 dollars, seriously endangers the country!s financial position. It r ia understood that the sudden fall in sugar prices caused the collapse, which may extend to other large banks. Several 'institutions, among which was the National Bank, attempted to take advantage' of the moratorium to negotiate loans in New York for many millionsof ready money to tide them over their; difficulties, but failed. BANK OF 'NEW ZEALAND.. We have received from the General Jtfanager of the Bank of New Zealand; a stout and excellently produced volume containing full reports of all the ordinary, half-year, and special general meetings of the Bank from August,: 1900, to June, 1920. The book,is embellished with many phptogiaphs, and concludes with a statistical table summarising -;t!he finances of the Bank in each year from 1862 to 1920. We shall take occasion to refer more fully to the work in V later issue. - •'" GRIDING OF HEMP. (PBESS ASSOCIATION- TKLEGUAM.) j •WELLINGTON, April ".id. ■ Complaints have been made to the Chamber of Commerce by buyers of hemp in Ana-

trafia, the United States, and Great Britain that there has lately been a serious depa.ita.re from the uniformity which characterised the grading ot New Zealand 'hemp hitherto. As a consequence oversea buyers threatened to turn their attention to other fibres, unless an immediate iinprovenient-took place in the standard of grading. The matter had been, discussed by h-emp exporters, who admitted that there were ?ome grounds for the complaints. The complaiwls are- to be tabulated and forwaTdsd with representations on -the subject tc the Minister of Agriculture. PRE-WAR. DEBTS BETWEEN BRITISHERS AND GERtMANB. (PRESS ASSOCIATION TELK&KAM.) WELLINGTON, April 11. In connexion with the New Zealand Clearing House established to' co-operate with the Imperial Government in the maltter of claims on pre-war dobts between Brinish subjects, and Germans, the position was explained at a meeting of the Chamber of Commerce to-day. It was stated that advice had beep received from the Solicitor-General, that it was exceedingly questionable whether the slapping consignees' claims could be supI ported, as it might reasonably be assumed that iby German law or iby the terms of the bills of lading, German shipowners were sufficiently protected. In view of the provisions of tJte trealty imposing fines of five per cent, of the amount of unsubstantiated claims for debts, it would bo wise for consignees to ascertain definitely their position before sending their claims to the clearing office. To overcome lithe difficulty of being tallied upon to pay a 'fine on unsubstantiated claims, tho Dominion Controller has agreed to send forward the claims of consignees with the s.s. Wismar on.condition* that the penal interest should not apply until niter • the clearing office of the creditors • had had the opportunity of withdrawing'the claim,-after receipt of the form of protest from the clear-1 ing office of the debitor. Tho'claims should bp forwarded ito tho local Controller immediately, as the date for receipt would shortly Mrpdre.- • PELTS AT A DISCOUNT. The "Levin Chronicle" provides two striking examples of what the lower prices for skins mean to the small producers. A week or ago, it says, a' Fairfield farmer forwarded a calfskin to a. Wellington firm to dis* pose of, and his feelings can! be better imagined than doscdibed when he received as hia return a couple of days ago the munificent sunf of threepence in penny stamps. The account sale showed that trie skin realised 3s 7d, which sum was almost •; wiped out by charges as follows:—Railage 2s, cartage Is. commission 2d, salting 2d—total 3s 4d; Net proceeds due producer 3d. ' A Levin farmer fared much better in a - similar sale, for his "net proceeds" were -200 per cent., more than that of the Fairfield man, amount in" in round figures to the sum of Is, charges again almost annihilating the eelling price of 4s 4d. ' The latter farmer informed a new©-, paper representative that in February of last year he received 21s for a first-class, hogget pelt, but the "sale of ; an.equally good ekin last month brought him Is Bd. NEW ZEALAND THE AMERICAN MARKET. ' Mr J. p., Cooper, managing director of the Wellington .'Farmers' Meat Company, delivered an address, to the Masterton Chamber of Commerce on Friday on his trip to England, America; and the Continent. Mr Cooper said that when the slump in America New Zealand would find a good market in the United States.for New Zealand produce. E-iery.'country, had a good, fast passenger ' service except New Zealand, _whicjj. possessed a trampi service, with cabins fitted. It would be a great advantage for business men to be able to go ■ to , England calling at American ports, and return home in threo monthß. The Government of. New Zealand should insist, '■ in mail contracts, that the 'speed of the eteamers should be taken into consideration, and an improvement should be insisted *n. Tho effect of the slump would be felt in -America- mose seriously than in New Zealand, because America had obtained higher prices for her goods than New Zealand. In America meat had brought the high price of 2» per" pound, and wool 10s per pound, while land there which, before tbe war, brought £2O per- acre, sold in war-time at £IOO per acre. •• The majority of Americans were not hostile to the British. If America discriminated against New Zea- j land in trade,- then N«w Zealand should retaliate, as Canada had done. OHRISTCHTJrtCH STOCK EXCHANGE.. YESTERDAY'S TRANSACTIONS. Sales reported:—N.Z Govt.'s} per cent. Inscribed; 1933, £B9. ; ! Latest quotations:— Buyers. Seller*. ■ £ bJ d. t a. d. DEBENTURES— ; N.Z. Govt. 4J per cent. Inscribed, 1938 —' 78 10 0 N.Z. Govt. 5 per cant. Bonds, .1927 ..88 0 0 N.Z. Govt., SJ. per cent. Inscribed, J933 .. 88 0 0 N.Z. Govt. 51 per cent. Bonds, 1933 .. 88 0 0 83 10 0 BANKS— National of N.Z. ... New Zealand ... FRQZEN MEAT— N.Z. Refrigerating (£1 paid) " .. ..' N.Z. Refrigerating (10s paid) —T: .. -»• 0 13 6 North Cant. Freezing

COAL— Westport-Stockton (8 per cent, non-cum pief.) 0 9 3 WOLLENS— Kaiapoi (£1 paid) .., BREWERIES— Manning .. • • MISCELLANEOUS— Beath and Co. .. 1 B 0 Colonial Sugar (Fiji and N.Z. 6 per cent, pref.) 19 0 0 20 0 0 Coooer and Duncan (10s paid) .. .. 0 6 6 ' Mason, Struthers (£1 pd.) Mason, Struthers (6s pd.) 0 6 0 MINING— Waihi .. ..173 , Waihi Grand Junction - AUCKLAND, April 11. Sales reported—Kaiapoi, Woollen, 26s 6d; .Vaihi, 27a 6d. WELLINGTON. April 11. Sale reported—National Insurance, 65f1. DUNEDIN STOCK EXCHANGE. (press association telegram.) " s . DUNEDIN, April 31. Quotations —Talisman . Consolidated, buyers 3s Gd; Waihi, sellers '2Bs; Mount Lyell, buyera ll8™10d; Bank of Australasia, sellers £PO; National Bank, sellers 110s; Bank of New Zealand, buyers 46s Gd, sellers 475; Union Bank, buyers £ll 7s 6d; National In-t surance, buyers 53s 6d, sellers 565; New Zealand, buyers 25s 4d, sellers 255 8d; South British, buyers 29s 3d; Standard, buyers 403; P. and O. (def.), buyers £3lO, sellers £340; Union Stoam (pref.), buyers-17s Bd, sellers 188' tid: . Huddnrt-Pairkcr (ord.), sellers 43 s 6d; W-estport Coal, sellers 275; Wesfport-Stbck-ton (ord,), buyers 5s 7d, sellers 6s 2d; DI.C. (pref.), sellers 19s Gd; Loan and Mercantile, buyers £B2, sellers £B3; Wright, Stephenson and Co. (ord.). sellers 355; Dunedm Stock Exchange Bropy., buyers 39s 3d, sellers 40s Gd; New Zealand Refrigerating C2os paid), sellers 345; New Zealand Refrigerating (10a paid), buyers 14s 6d, sellers 15s 3d; South Otago Freezing, buyers 955; Brace Woollen, buyers 395; New Zealand Paper, Mills, sellers 27s 6d; New Zealand Express # Co., Bailers 16s;-Wilson's Portland Cemenft, sellers 365; HUburn Lime and Cement, sellers 30s 9d; Perpetual Trustees, buyers 335, sellers 05a; Trustees' Executors, sellers 525; Government Bonds. 1930, sellers £B7; 1953, buyers £77.155, sellers £7B; 1939, buyars £77 15s; Inscribed Stock, buyers £77 17s 6d, sfJlora £7B 10s; Soldiers' .Bonds, sellers Soldiers' Bonds, inscribed, buyers £BB' l'Ss, sellers ■ £B9 15s. GENERAL NOTES. Mr James S. Alexander, president of the National Bank of Commerce in New York, speaking at a dinner of the Association of Stock Exchange Firms in New York on February 4th, said:—"Business cannot idly wait for the. public to resume active buying. It must stimulate buying by establishing.a wide prevalence of substantially reduced prices for goods, which musV be based on increased efficiency in production and distribution, and the acceptance of reasonable margins of profits. . . .In this connexion the growing tendency of labour to become more lefficient,, and its willingness to accept some liquidation of inflated wages, is a most encouraging circumstance, from more tban one point of view the readjustment now going on in respect to labour supp.y and uemund is boneneiul to'the ludiviaual worker. Xflo excess of jobs oyer workers, inflated wages, and lax supervision from employers which characterised the boom periou were all influences upon labour contrary to its beat interests. Radicalism, encouraged by labour scarcity; invaded and depreciated the quality of labour as a component in our national economic' lire. High' wages begot extravagance that soon reacted in rising l prices, reducing the buying power of those very wages, soj that labour's gain was more apparent thaii real. 'l'here »uso developed a demoralisation of individual efficiency, because, men were not kept on their mettle by comjjptition for work and advancement. With tiie return of aiore rigorous conditions, it is becoming clear that the best interests of conscientious labour are served by a more normally.balanced relation between labour supply and demand. . . . But employers must play fair and not attempt to lower wages unduly or to enforce greater curtailment than circumstances warrant. They must recognise that, in any country worth living in, the standard of living tends ever upward.' Wage-earnera in the United States' are entitled, to the opportunity to receive more man merely the means for a bare-aid joylesfl existence in return for real work well done. I Any other attitude on the part of employers would be a menace hot only to the orderly readjustment of existing conditions, but also to sound business progress in the long run. I believe we are justified in confidence that these elements of progressive readjustments which are working toward better times are now greatly in the majority." The banking profits for 1920 of the "big five," as they are termed in London, were bu a vast scale. The five institutions are Llaydß, Barclays, London Joint City and Shdland, National Provincial and Union, and ithe London City Westminster Parr's Banks. The largest profit reported was by Lloyds of £8,237,742, all the others being within close range of the £3,000,000 mark.- These figures are in excess of those for the preceding year, but there has not been much variation in the return to the shareholder. The way in which appropriations have been made to cover the risk of probable losses from the fall in securities shows how British bankers face possibilities of the kind. As happens the share market has made in their favour, and bo the movement results in a good addition to inner "reserves. Over £4,400,000 was set aside for such risks, as against £3,160,000 in the preceding year, and reserves and contingency funds were increased by votes of over £1,600,000, while £900,000 waß written off premises. The issuing of the full balancesheets showed that the complaint that there has been either a contraction in banking credit or a rationing of it is without foundation, as total bank advances are up £160,000,000. The former rate of increase of deposits has not been maintained, the growth being £102,500,000, as against £250,000,000 for the previbss year. Leaders of the banks are emphatic that it has been the policy throughout to grant accommodation whenever that could be done with safety. The mere fact that the prico of linseed oil has dropped so,sensationally has -proved sufficient, says an Australian exchange, to discourage new purchasers 'of turpentine almost at any prico. Calculations in this article, especially in the American trade, have 'been badly upset,' and the question of cost of production, as in man/ other commodities, has had perforce to be brushed arid* as an argument in favour of a recovery. American'consumption has been much reduced, and this, coupled with considerably reduced export requirement?, has caused supplies to accumulate in producers' hands to an extent which has utterly.discouraged new interest on the part of dealers. There Is not much doubt in the minds of some merchants that the price will'be. settling down to a lower level yet, as it is probable that considerable accumulations of stock exist, in the United States, the financing of which m not an'easy matter in the present depressed surroundings.