COMMERCIAL.

Press, Volume LXI, Issue 18416, 24 June 1925, Page 10

COMMERCIAL.

NEW ZEALAND LOAN. FRIENDLY BUT IMPARTIAL OBSERVER. (Fit Oil OCR OWN COSRESPOKPE^r.) LONDON, May 23. In order to obtain an absolutely independent opinion regarding the view taken in the city concerning the result of the New Zealand Loan, and the small response from the public, I thought it would be interesting to go outside New Zealand circles altogether. Accordingly, my steps were turned to the city office of ari experienced financier, who, as I knew, had a, good knowledge of overseas finance in various parte of tlid Empire. There was the further point, too, that though always friendly disposed to the Dominion, I knew he would give me a perfectly detached view.

Sheer Bad. Lack. Asked whether he thought the time for application had been judiciously chosen, he replied: "1 do not think that the High Commissioner' or his officers are to he blamed in the matter at all. I presume that the tim 6 selected to place the loan was one suitable to the finance of the New Zealand Government. The miscalculation, such 3S it was, was that of tho underwriters. They evidently thought that the loan would-go at the price fixed, and it was certainly not for the High Commissioner to press them, to st&nd out for better terms. "The issue had to face a certain amount of sheer ba3 luck. Several causes-went -against it". . - There was the uncertainty of how the partial return to the gold standard and the consequent tightening of money would • affect things, and this had . been increased by tho knowledge . that had got about that there hail been some selling of gold for abroad by the Bank of England. People did not know how far thiswould go. Then there were the gloomy discussions in the papers, following on the Budget, of the position of some of England's chief industries—such as coal, iron, and eteel. shipbuilding, cotton, and the possibility of industrial trouble among rail way men. Abroad, there was the Hindenburg election, and the fall of the friendly Herriot Government in France. Finally, it is possible that a certain number of people in the city were expecting the very largo • London County Council Loan which immediately followed. The L.C.C. Stock has always been a very favourite investment,' and people would naturally wait for that."

Some Frlendy Advice. In reply to my enquiiy:—"Do you think that the .poor initial response will be likely to affect the Dominion adversely in the event,, of a further loan being asked for in the future?" he said: : — . "No, I do not think there is any lack of understanding in this country about the resources of New Zealand or its general prosperity. These are wellkiiown. You must remember though, that the New Zealand Government has - been a very large and regular borrower since the war, and that £7,000,000 is a large sum of money. "If New' Zealand does not mind taking a friendly hint, I think she has been-coining here rather often, and she might do well tocome a little less regularly., Then, no will be done." "It has been said' by many people pbssibly Mr "Massey's death' inay have flhakon somewhat the faith of investors. What is your opinion P" I asked.

"No, I do not think that the death of Mr Mas&ey had anything to do with it. People here know nothing of tho internal politics of- New ' Zealand, nor are they in the least:interested in them. They believe New Zealandera to be a peaceful, industrious, loyal population, and imagine vthat they-Trill continue to be so: under a®y < Government likely to hold office."

MORT AND COMPANY, LIMITED. id * . ANNUAL REPORT. The directors' annual report of Goldsbrough, Mort and Company, Limited,, ia to hand. The report states that the set profit for the year waa £320,207 6s 8d; amount brought forward from' last year £72,442 6s4d; loss bonus to staff £6239 12s 2d, making a total of £386,409 19s lOd. An interim dividend at the rate of 10 per cent, per annum was paid -in December last, £62,592 Da; and the directors recommended, the'payment of a dividend which, with the. interim dividend, makes a total of 10 per cent, for the year, £75,000; the payment of-a bonus of 6 per cent., £75,000; transfer to reservo fund (making it £1,000,000), £60,440 8s 7d; transfer to provident fund, £SOOO, making a total of £278,032 12s 7d, and leaving a. balance to bo carried forward of £106,377 7s 3d.

The report went on to state that the Improvement in the oarnjng capacity of the company disclosed by the figures presented, was not only the result of tho extension of the company's operations to South and 'West Australia, and the employment of new capital, but also of the. generally favourable conditions . which prevailed . throughout the ' year under review, with .the single exception ' of the severs slump in wool values about the -.beginning oft his, year. ~To meet tho eontinned oxpansfon 'of biisinass the directory proposed, to further ,;ahgmeht the company's financial resources'by the creation of 260,000 new shares, bringing-'the > nominal capital to £1,750,000. An extraordinary meeting will be held at the close of the annual meeting on y-Frid&y-next in:. Melbourne, at which : the proposal:-will.be. submitted to the shareholders for .their, approval. The wool . season : : of 1924-2& would rank as the most remarkable' to date in.-, the \ history of tho trade. Although it was estimated that up to the end of -■tho -statistical, -year on the UOth lnstr," there would'be about 500,000 bales unsold—approximately . one of the total —it was remarkable tnati the.'portion already sold had realised about £52,600,000, which -waß within ft million of the total received in tho whole of anjr.previous year's ■ales In Australia, and about £5,750,000 in excess of the total result in . any year during the appraisement period.: Auction sales, hsa been postponed, but some private sales ' had boon made at prices - generally much in advance of pre-war feature which must be considered' 1 gratifying, and which recent boom rates were apt to cause many to disregard in'taking a view<of'the situation. On the company's stations the past season was one of the best experienced for . many years. Good prospects for some . time 'ahead were assured. Tho quantity of wool handled in the year, ending March 81st last was .as follows:; —Bales sold, 162,959; bales shiplied, 926; total. 163,884. -The curtailment ~ of offerings following the break in prices. "■ which adversely. "■ affected the total of wool sold,'brought about also an abnormally heavv carry-over, .the unsold wool in store at March 81st belng'-&9,654 bales, against only 3802 last year, , \

IWHEAT. 0 ■ 1 ■■ 1 * (Received Jane 2Srd,,B p.m.) LONDON, Jane 22. Wheat cargoes opened steady, but closed disappointingly on lower American 7alueß." Parcels opened firm, but oased. . . - *■ : r

. DAIRY PRODUCE. J * J ]• , Dalgety axd Company* Limited, have reyecived tie "following ' cablegram from thoir - London Office,, dated June 22nd:— "Butter—Since our advice of 10th inst., Mb prices ate 2s higher. A continuance of dry H weather helps to maintain high -prices."