FINANCE AND COMMERCE.

Press, Volume LXIII, Issue 19145, 31 October 1927, Page 12

FINANCE AND COMMERCE.

BRITISH TRADE.

COTTON, SILK, AND WOOL. {xrzrms roa ijcc muss.) (Br too Commercial Expert ot the "Economist.") If optimism were a disease, a study of the history of the Lancashire cotton industry in recent years might be jrcKribed as a remedy. Misfortune continues to dog the footsteps of the industry. A distinctly bullish view is taken of the future of American cotton prices, with the result that the prico of American cotton is to-day roughly twice as high as it was early jn the y*ur. And even when cotton •tras half its present value Lancashire's trade was not good, the chief reason being that bhe could not supply a largo part of the world with cotton goods at j.rtcrs which it could afford to pay and which left Lancashire a reasonable xnarpn of profit. Moreover, the Federation of Master Cotton Spinners' Astorxations and the Cotton Yarn Association arc unable to evolve a common policy. so that the cotton trade is very much in the same position as_ a sick I* rson when two eminent medical advi.sers cannot agree upon the course of treatment.

It is most disturbing, indeed, that the Cotton Yarn Association is not jnc-eting with more support in its efforts to bring back prosperity to Lancashire. It was doubtless thoughts of this kind that inspired the Association to call a meeting of the reprevntatives of the industry at the Manrbetter Town Hall. The Lord Mayor presided and Mr J. M. Keynes delivered tbe principal speech. There was no tendency to despair of the future of the industry. Mr Keynes suggested tho formation of a kind of Parliament of the whole trade which should include both employers and operatives. He urged that there should be extremely wide terms of reference, among them being the ascertainment of overhead costs; whether salaries were too high; whether there were too many directors, middlemen, etc.; whether there were not more efficient ways of raising mill capital; and whether the present merchanting and marketing system was efficient. The fate of Mr Keynes's recommendation remains to be decided. Meanwhile, one cannot be very optimistic regarding the possibilities of effective co-operation in the textile industry no long as there aro numerous small producing units, and so long as their finances are in a chaotic state.

Busy Artificial Silk Manufacturers. A feature of the Stock Exchange in August has been the wild price movements of the ordinary shares of the British Oelanese Company. The par value of the shares is 10s. At the beginning of the month they stood at 44s and at one time rose to 765. ' The price increased by as much as 14s in one day, but the quotation on the last day of the month was back to 64b. Profit estimates have been put by rumour at such fantastic figures as £4,000,000 per annum. The actual profits are possibly less than one-quarter of this sum and responsible authorities arc advising - investors' to take no part in this speculation. The shares of other British artificial silk companies have also been buoyant. It would thus appear that the belief is current that the companies are enjoying a period of prosperity. What are the facts?

It is true that the consumption of artificial silk in this country is to-day approximately 30 per cent, higher than the average during 1926. Indeed, the demand for yarn, at least for particular rlaseeß, is reported to be greater than the supply. The cotton manufacturers are almost entirely responsible for this increased demand, for they are using large quatities of artificial silk in mixture fabrics, and this demand is expected to be maintained throughout the winter. The present prosperity of the companies is largely due to the fact that Messrs Courtnulds, who practically control the market, have aimed at keeping prices at a reasonable level. One unexpected —but none the less "welcome —result of the present activity is that the sewer companies have overcome their initial difficulties, in. regard to working capital to which we have made reference in previous articles, and arc now fairly prosperous. But, though the future af artificial silk is undoub-1 tedlj assured, it must not be forgotten that a large proportion of the companies' output is subject to the dictates of so fickle a ruler as fashion. The Australian Wool Season. The outstanding event in the wool industry has been the opening of the Australian selling season. The wool clip is described from tho growers' standpoint, as an "unparalleled sue•■ess." It is pointed out that it was cf record volume and showed the largest turnover of any season in the industry's iiistory; and despite many grave difficulties at the consuming end, values nave been fairly stabilised. The results are rightly regarded as a matter for congratulation. The average value per bale was £2l 13s, which compares with £2O 19s 4d for the provions season. The total value of the Commonwealth clip 'is returned at £55,610,468 in contrast with £57,180,150 in 1925-26.. It should fee noted that, though the season was bounteous in the south, it was one of disaster and drought for Queensland. Unfortunately, the unfavourable conditions continue in this State. The fact that the clip, as a whole, is so satisfactory is considered a sufficient answer to fhoie who have been describing • the Australian wool industrv as decadent.

A* for the sales, though Britain is no longer the dominating factor that sho was in the Australian market, Britain was the best customer of Australia and New Zealand, as * whole. France was the second best, being followed by Germany. It appears t Wbat the Australian sales have assumed permanent importance, for some 90 per rent, of the clip is sold in the country in which it is grown, whereas the bulk of it used to be disposed of in London. The woollen trades in this country show seasonal quietness. The greatest weakness is still to be found in the white yarns section, where short time prevails en a large scale, coloured Bpinners continning to report more satisfactory conditions.

AUCKLAND CITY PROPERTY. <FBESS ASSOCIATION TKLZOBAII.) AUCKLAND, October 29. Four big city property sales were negoluttd in Auckland during the week. The properties affected are Porter's Buildings in central Queen street (which have been acquired by t> Wellington firm which intends to erect a five-storey building). Arthur's Buildings in Upper Queen street, Bussell C*rapotU and McVeagh's three-storeyed toildin; In O'Connell street, and (fourthly) Mie of the oldest shop and offico buildings in Wyndham street. Forty thousand pounds »-ere itwlved in the ealo of Arthur's, who «iH, # however, continue to carry on their Isttctionptring; business on the premises, the Sale being made for private reasons. NEW GUINEA GOLD. (Beoeivea October 80th, 5.5 p.m.) SYDNEY, October 30. The output of the Bulolo Goldfield, New Cuines, to dst* is Tslaed it £300,000,°

TIMBER TRADE. IMPORTS DECREASE. [THB PBBSS Spsclal Serrlce.]

WELLINGTON, October 30. New Zealand timber imports for the first eight months of the year showed a decrease of 5i million feet as compared with 1926. Exports have brightened during the last three months, but figures aro still below those for the corresponding period last year. Despite the import drop, douglai fir, redwood, and Australian hardwood all report individual increases, the most marked being the hardwood total. In addition, although hemlock and spruce showed considerable slackening, imported cheese crates, which are manufactured mainly from hemlock, came into the country in increased quantities. Cedar, hemlock, Bpruce, and oak showed considerable decreases on the import table, cedar and hemlock together falling off by over 7,000,000 feet. The drop in exports is expected to be wiped out by the year's end and it is fully anticipated that when December comes the timber exports will slightly exceed . last year's figures. Nevertheless, the trade will have experienced a very lean year, the worst period for the past 26 years. The balance of trade has been decidedly in favour of New Zealand in comparison with the same period for 1926. This vcar importations have decreased from 41.435,000 feet to 39.004,000" feet, while exports have decreased from 26,098,000 feet to 25,127,000 feet, which gives the Dominion a balance of 4* million feet more in her favour than she possessed in 1926. When it is realised that the balance was 4 million feet against New Zealand for the first five months of the year it will l>e seen that the trade has Improved considerably.. High imports for the last three months recorded account for this position.

FRUIT EXPORT.

A WORD OF WARNING.

[THB KRESS Special Serric*.}

WELLINGTON, October 30.

Although the fruit export season just concluded has been a very satisfactory one to New Zealand exporters, Colonel 0. Gray, who returned from the Old Country by the Corinthic, issues a warning to growers not to anticipate that such all-round favourable conditions will always prevail in the future Colonel Gray went to England for the purpose of supervising the distribution of fruit handled by the New Zealand Fruit Export Control Board. "There is just one word of warning that I want to put forward," he said, "and that is that we should not overlook the fact that last year was an exceptional year, and that all conditions operated in our favour. I don t think that we can expect similar results or anything like them every year, but I feel that whatever the conditions of the British market may bo next season we shall start with the value ol the added reputation we have, built up this year. . "One of the biggest merchants m Covent Garden told me shortly before I sailed that in his opinion NW Zealand had the future in her own hands, | and if we played our cards properly the industry should, be' well establisbI ed. There 'hacl.been criticisms during my absence' of the principle of fruit control, arid I - have seen statements that the trade in Great Britain is opposed to it;.- I da not believe this is the case, and provided the policy of the Board is conducted reasonably, and with commonsense and fairness we shall have very strong support in Great Britain for what we are doing. The thing is not • perfect at present, but it is capable of being turned into an extremely useful instrument for the fruitgrowers of New Zealand. Our fruit has nob only been marketed in London, but in "various centres in England and-Scotland, and we haw obtained the best prices available on the particular market at the time the fruit was there."

DALGETY AND CO., LTD. DIVIDEND AND BONUS.. Dalgety and Company, Limited bavo received cabled advice from their London office that tho annual meeting will be held on November 16th. The Board will recommend final. dividend of 3s in the £ malting wjth the interim dividend 10 per cent, for \he year ended June 80th last, also a, bonus of 7e per share for the year—dividend and bonus payable on November 22nd. The Board recommend writing down premises by £25,000 and increasing the staff provident fund by £05,000, appropriating £25,000 for payment of a special bonus to the staff leaving £228,100 to be carried forward. , WHEAT. QUEENSLAND HARVEST. \HT CABLt— PRESS ASSOCUTIOK—COPYBIBHT.) IAUSTRALUK AND ST.S CABIJI ASSOCIATION.) BRISBANE, October 29. The Director of Agriculture estimate* the wheat yield of the State for the present season at over 3,000,000 buahelfl. CHICAGO QUOTATIONS. (Received October 80th, 5.5 p.m.) NEW YOKE, October 29. Chicago wheat quotations are: December, 125J, March 12% May 131J cents a bushel. HOME MARKETS. (Received October 80th, 5.5 p.m.) LONDON, October 29. Cotton—November, lid per lb. Rubber—Para, 14* d per lb; plantation smoked, Hid. Jute—October-November, £29 5s per ton. Hemp—November-December. £34 per ten. Copra—October-November, £27 v«i ton. Linseed Oil—£3o 5s per ton. Turpentine—S6s Gd per ewt.

MEAT. (Received October 30th, 5.5 p.m.) LONDON, October 29. Sheep—New Zealand selected, light 5Jd per lb, medium 6Jd, heavy 5Jd; North Island eo'ected, light 6d, medium 5Jd, heavy s|d. Ewes, 4Rd. Lambs —Canterbury, heavy 9d per lb, seconds 9Jd; North leland, firsts &Jd, seconds 9£d: North Island, firsts 9ld, seconds DidArgentine, hinds 5Jd, chilled hinds cjd. Others unchanged.

CHRISTCHURCH STOCK EXCHANGE. Business iraa bria'i on call, there being a. fair number of parcels charging b*nd» at price* eligatly in advance of Friday's marfeeta. The etoqi and bond market was quiet, r.e> sales being recorded. Prices held at lata In"'the banking section, Bank of Adelaide were fractionally firmer at buyers £5 lof, stllers i 3 163. Bank of Australasia: *o changed hands at £U lis 6d, closing buyers £l4 11a, sellers £U 12s 6t3. National of Australasia fully-paid shares were quoted ±l/ as buyers, £l7 lis sellers. A parcel pt tbe £5 paid shares changed hands at a, slightly advanced price of £3 14s 6d. An odd parcel of Bank of New South Wales shares was bought at £4l is 6d; market closed buyers £43 15s, tellers £44 2s 6d. Bank of Aow Zealands were firm at buret* 57s lOd ana aeUers 58s id, and a sale of 200 took place at s£s. Union Banks were easier, sellers odering at £l4 ss, no buyers bidding 1 Tactions ealea were made at 51s (three parcel) and 495, closing buyers 47s ed, sellers oOs. Fractional rights changed hands at 9s 6d; market closed 9s 3d buyers, 9a od sellers. In the miscellaneous investment section, DaJgetv and Co. were quoted buyers £l3 IU, tellers asking £l3 lis. For new fullypaid shares in this company, buyers ±l3 19s 6d, sellers £l3 Is- Goldsbrougb, Mort and Co. buyers offered 47s 6d, but none was ofiered. There wero sellers of the ne'* shares at 4"s without attracting buyers. New Zealand Lean and Mercantile entered the buying list at £?3 10s, no sellers quoting. New Zealand Refrigerating held at lata rates, market closing buyers 14s lid, sellers 153 Id, and for lCs na-id shares 7s Sd was offered by buyers and 7s 9d sellers. Business in Christchurch Gas wa« brisk, there being one sale at 23s 6d and three at 23s 4d. The total turnover iu these shares was 500. The closing quotations were buyers 23a 4d, sellers 23s 5d.. Two hundred Holdon's Motor Body Building Co. shares wer« sold at 33s 10d, closing with a margin of only Id between buyers and sellers at 33s 9d and ZSa lOd.

SATURDAY'S TRANSACTIONS. Sales re-ported—N.Z. Govt. <j per cent. Bonds, 19SS, £96 10s; Bank of K.Z., 5Ss; Union Bank (rights), 525; National Insurance, 80s. Sales on 'Change—Bank of Australasia, £l4 12s 6d; Bank of Js'cw South Wales, £H 'is Cd; National Bank of Australasia {£s paid cum div.), £6 14s Gd; Holden's Motors, 33s lOd (two parcels); Union Bank (rights), Sis (five parcels), 495, fractions 9s 6d (four parcels); Christchurch Ga3, 23s 6d, 2Ss 4d (three parcels).

LATEST QUOTATIONS. BuTers. Sellers. '£ 'e. d. £s. d. N.Z. GOVT. DEBENTURES—1* per cent. Inscribed, 1933 .. .. £W 2 6 36 10 0 ii per cent. Inscribed, 1933 .. •■ 9« 2 6 44 per cent. Bonds, 1938 .. .. 96 S 0 96 10 0 SJ per cent. Inscribed, 1933 .. .. 101 2 6 101 7 6 5J per cent. Bonds, 193 C .. .. 101 5 0 BANKS— Adelaide (cum div.) .. Sls 0 Sl6 0 Aust. of Commerce .. 112 6 112 9 Australasia .. .. 11 jl 0 11 12 6 Comni. of Aust .. 1 S 7 1 810 Comui. of Sydney .. National of Australasia (£lO paid, cum div.) . 17 9 0 17 11 0 National of Australasia (£5 paid, cum div.) Sll 3 S U 6 National of N:Z. .. Now South Wales .. 43 15 0 41 2 6 Now Zealand .. .. 217 10 218 2 "Union of Aust. • .. Union of Auet. (lisbrs) 2 7 6 210 0 Union of Aust. (factions) .„ ..093095 INSURANCENow Zealand .. -. 1 59 0 South British . .. LOAN AND AGENCY•Balgety and Co. .. 13 11 0 IS 12 0 ' Dalgety and Co. (new) 12- 19 6 IS 1 0. Goldsbrough, Mort .. 2 7 0 Goldsbrough, Mort (new) • ■ 2-7 0 N.Z. Loan and Morcan- ■ tile (ord. stock) ... 93 10 0 SKIPPING- .. i Devonport Ferry ,\ 13 0 15 0; Howard,. Smith .. Adelaide Steam .. 1 6 0 1 6 S\ Huddart-P&rfcer .. 27 0 ' 2'B 0 ! P. and O. Beferred . • . I Stock (cum div.) .. 255 0 0 271 6 0' ■ TJi'ion fbrof.) ... 10 0, FROZEN MEAT— . , Canterbury ....... 712 6 8.0 Oj Canterbury (pref.) .. 116 0 i N.Z. Eefrig.- (£1 paid) 011.11 0 1-5 1. N.Z. Reffigi (contr.) ..' 0 7 8 0 7 9 WOOLLENSKaiapoi (17s naid) .. 0.8 0 010 0 Kaiapoi (pref.) ~ 010 6 013 0 COAL- '••':. Taupiri (cum div.) ... ' 1 6 1• 1 7.0 "We3tuort, .. .. - 1 16 0 GAS— Auckland .. .. 1 2 9 1 S 3 Christchurcb. .. .. 131135 Christchurcb (rieir, 5s paid) .. 063 066 Tirnaru .. .. BREWERIESNow Zealand .. .. 2 11 2 4 6 ' Staples ....' 138 3 IIS G White Star ■ .. —' 10 0 TIMBERKauri .. ,; I' 3 3 1 1 6 MISCELLANEOUSBeath and Co. -.. 112 0 112 6 British Tobacco .. 215 9 217 0 Colonial Sugar .. 54 0 0 61 10 0 Electro. Zinc (ord.) ... 110 0 111 0 Electro. Zinc (pref.) .. 11l 9 1 11.11 Henry Jones Co-op. .. 116 7 119 0 Holden's Motors .. 113 9 113 10 Mercantile Finance Corporation (5s paid) .. 0 14 0 2 0 N.Z. Drug Co. .. Whilcombo and Tombs 3 7 0 3 S 0 i MINING— Kawaran. .. .. 0 010 0 19 Mt. Lycl! , 1 7 0 '1 7 6

OTHER EXCHANGES. (CRESS ASSOCUWON TEIEBBAM6.) AUCKLAND, October 30. Sharemarket sales—Bank of New Zealand, 58s; Union Bank of Australia 'rights) 525, fractions 9b; Taupiri Coal, 26s vd. WELLINGTON, .October 30. Sales on 'change—Union Bank (rights), 61s 6d; Union Bank (fractions), 9s 3d. Sale reported—Queensland Insurance, 55s 9d.

SHEEPSKINS. Dalgety and Company, Ltd., have received tho following cablegram from their London office, dated October 2Sth:~ Sheepskins—At the sales, 4398 bales were offered, of which 3740 were sold. The closing rates as ccmnarfd with closing rates of last salea were: For best merino combing ekica slighlty higher," average combing unchanged, clothing unchanged, Australian fine crossbred combing 5 per cent, higher, other crossbred par to rather dearer, and lambs 5 per ceflt. higher. Prices realised were: Merino, three-quarter to full-woolled, 14d to 16* d; merino, O/uarter to half-woolled. Dd to 12ki; merino, short and shorn, 7sd to Sd. Fine crossbred, three-quarter to full-woollod, 13nd to 17jd; fine crossbred, quarter to halfwoolled, 9£d to % ISJd. Medium and ocarse crossbred, to full-woolled. IOJd to 14d; medium and coarse crossbred, quarter to half-woollad, S£d to lid. Crossbred, short an 3 shorn, 7d "to lOd. Lambs, 13?-d to 15£ d. Pyna, Gould. Guinr.eas, Ltd., have received called advice from London, dated 28th fnsi., as follows:

"Ths shs*p»!f!.nß sale cpenod to a. large attendance, with keen competition. Americans operating. As compared with September sales, prices for merino, fine, short cross wero 5 per cent, doarer, while medium and coarse wore par to 3 per eeni dearer."

POULTRY MARKET.

DAIRY PRODUCE. Messrs A. H. Turnbull and Co. aie in receipt of tie following cablegram from AY. Weddel and Co., Ltd., dated London, October 28th:— Danish butter, 190s (last week 190s to 192 a); New Zealand unsalted, 184s to 186s (:84a to 188s); New Zealand Baited, 172 a to 176 i (178« io 176 a), market slow. New Zealand cheese, white, 102s to lots (102s to 104s); JTew Zealand cheese, coloured, 101s to 103s. ' Mar Vat quiet. Canadian, cheese, white «jd coloured. 102& to 10*» (103 a to 1058).

Fair entries of poultry have come forward for the weekly market. High prices are ruling for good quality birds The Canterbury Co-operative Poultry Producers, Ltd. report the following prices per pair. Table chickens, light 7s to 9s 6d, heavies 10s to ISs, hens, light 6s to 7s 6d, heavier 9s to 10c 6d; ducks, 7s 6d to 10s; geese, 7s to Ss: turkev hens, lGs to 235; turkey gobblers, 30s to 425.