FINANCE AND COMMERCE.

Press, Volume LXVI, Issue 20094, 25 November 1930, Page 12

FINANCE AND COMMERCE.

STERILISATION OF GOLD.

KFFECT ON TRADE

A.MEJMCAN ECONOMISTS' VIEUS

'i: :.ue!!iOran'.iuru mi tue stale m -.fade, addressed to the Government, j he Manchester Chamber of Commerce ;-,o or three months ago attributed the existing depression to the monetary i :: •us t ion. It set out: •■Whether this is due to t'ua virtual • teriHisitioii of so much gold in certain i-cuctries, or to a check ou the annual .nerease iu gold production is beside point. The fact is that the monetH .- v position til 'lie present moment is • r.e of the greatest barriers to the remove rv of traue ie genera;, anu the cOl\'jr, tra'Je in particular,' '■■iter from a Liverpool broker to the resident of the Cotton Exchange of Cor|*u;s Cn ns;;, le'ias, tjnoied in the monthly l.eitev of the National City Hark o* Ne.\ York for October:The British Vievr. " *\V -Jo ot consider it likely that, e will buy much American cotton this nest s-.'Saoa- It is relatively dearer •ban other growths. Also it is obvious!v to this country advantage to trado with countries which are prepared to ink-; our goods in exchange. In our opinion, by absorbing half the gold in the world and 'freezing' it in the cellars of central banks —withdrawing it Jrom circulation —United states of America have upset the recognised means of exchange and have caused abnormal declines i:i the prices of raw materials, making it impossible for these to be normally exchanged for

manufactured goods. We cannot afford | to tee mure gold so treated, and therelore we feci we should do everything >n our Doi\tr i'j trade with countries n hich are content to tiaiie with us 1.1 :etum. This country is dependent for !»s existence on being I'blo to export manufactured goods as payineut for imported goods and raw materials. We cannot otherwise maintain more than half of our present population. In our •-•pinion the present troubles of the commerce and industry of the world are i-sused bv interference in the natural iJow of trade by Governments.'' What American Economists Think. j J"he terns ♦'sterilisation," says the .Letter commenting on the above quotations, is used to imply that the United States and Trance have large amounts or gold locked up and not permitted to render service as the basis of credit. OSicial figures show that between Juno 30th, 191-1, and June 30th, 1929, tho "United States' stock of gold increased by £456,600,000, while the loans, dis- ' counts, and investments of our banks increased by £7,007,000,000. This is 15.49 dollars (say £3 4s t3d) of additional bank credit for every dollar of net addition to the country's gold* stock. Opinions may differ as to how freely the banks should respond to requests for I n ati3 in a time of great speculative expansion, such as this country passed through from 1922 to 1929, but we subnit that the use ol' gold at this rate is rut exactly ♦' yterilisation." Britain's Position in World Trade.

Comparative ilgures relating to the distribution of the world's gold in 1930 as compared with 1912, the Letter sets out, do not afford impressive evidence ihat the world is worse off than in 1912. Argument over the equity of tho existing distribution may be maintained, but that is one of the oldest subjects of dis- j pute in the world. The Manchester Chamber off Commerce must be aware that factors other than the supply of gold are affecting the trade of that great centre of the cotton goods industry. Competition has dc- j veloped in many countries that once | looked to Manchester for goods. Japan I has built up a highly efficient cotton goods industry which competes throughout Asia. China and India have made great ytrogrcss in the manufacture of totton goods, and despite the well-known ability of British business men, the skill of British workmen, and the high reputation of British goods, there ia a question as to whether British industrialists employers and employed—appreciate ihe necessity for a close study of their present position ,iu world trade. Tho Industrial Problem and Banking Policy. As affording some light on the question why the flow of gold on balance is unsatisfactory to Manchester, the following remarks of Mr J. O. lit. Clark, ' chairman of J. and P. Coats, Ltd., thread manufacturers, Glasgow, made at the fortieth annual meeting of the company, are quoted:— "Nothing is to be gained by refusing to face the facts, and it lias to bo ad- . mitted that as far as our own mills in this country are concerned we are ■not in as good a position to-day to face foreign competition as we used to be. owing to high costs i'rom one cause and another. . . I have had a comparison made of the costs, exclusive of raw material, at which we are able to produce at the mills of one of our associated companies on tho Continent, where lhe same, or similar machinery to that used here is installed, running that machinery at approximately the same •speed, and producing a quality well up to our home standard, and it shows that what costs us 100 pence to manufacture in Paisley can be produced at 53 pence at the foreign mill in question." It may be doubted, comments the Letter, that such an industrial i>rob-k-m as thi.s extract describes can be solved by a mere change of banking ■policy. What can be done to regulate the distribution of wealth, or of gold, the most liquid form of wealth? Gold goes apparently where it can be ussd to the best advantage. Englishmen will send

it out of England for that purpose. Its movements are determined by the balance of payments, and a country's relative position in trade and industrv is »n important factor.

IMPERIAL TRADE. MR STANLEY BRUCE'S VIEWS. -Mi Stanley Bruee, ex-Prime Minister. oC the Commonwealth, who recently returned to Melbourne after a ten months' Hliday abroad, said he was ready to -iter politics when the occasion was a vailable, which, h<s believed, would not "->9 long delayed. Deferring to the Imperial Conference, Jlr Brace said: "We cannot expect to yet very far while the British Government adopts the attitude' which it has adopted during the Conference, However, there is a" tremendous fseling in" Great Britain in. \ favour, .of definite iition to promote inter-Imperial trade;*'

; BRITISH TRADE. I SIGNS OF IMPROVEMENT. NEED FOR CHEAPER MONEY EMPHASISED.

oi'jficiAL v/iESLiioS." J V Received November 24th, 5.5 p. HUGE Y, Xovember 23. speaking at Farnham, Mr Philip Snowden (Chancellor of the Exchequer) said ho shared the view of the Federation ot British Industries as expressed in the latest report that tlierc were signs ei improved trade. He added: "When it. docs conic, I think it will come with considerable rapidity. So long as prices arc low and there is an impression that thev have not touched rock-bottom there v. ill be a reluctance to buy, but as soon as the impression becomes genera! that prices are rising it will be a very great stimulus to trade." He expressed confidence regarding the future of British trade. Its percentage of the total world trade was slightly less than formerly, but as other countries became industrialised, that was inevitable. It was volume, not proportion that mattered. World trade was still in its infancy. At least two-thirds o: the population of the world still had a low standard of living. As they progressed, their demands for manufactures from other countries would increase. Need for Cheap Money. When speaking of world conditions which had contributed to the trade depression. he welcomed the increasing attention which was being paid to effect m monetary policy upon industry. Hn had no doubt that the interested Governments would give serious consideration to and tako any necessary action | upon the report, which would shortly be issued by the Committee of the League j ol" Nations which had been examining [ the subject. Cheap money was an essential condition to trade recovery, but he did not say cheap money alone would bring a great revival of trade. There could bo no revival unless thero could be an assurance that we were going to have cheaper money; not only cheap short term money, but cheap long term interest rates.

During the last twelve months there h;;d been a fairly considerable reduction in the price of long-term money and hi. thought the tendency was now permanent towards ;t reduction in the price of long-term borrowing. He spoke with great reserve upon this matter be-

ci.use ho found that the observations he had made at Mansion House a few weeks ago had created expectations that the Government might endeavour at an early date to carry out large Scale conversion of that terrible incubus of £2,000,000.000 of 5 per cent, war stock. Therefore he would say no more than this, that an effort would be made when in the .Government's opinion the tim? was favourable. TRADE WITH THE DOMINIONS. ftus ASSOCIATION— ST ELT.C'iT.IC TEt-EGBAPK—COP YKIOHT. J LONDON, November 23. Mr Snowden expressed the opinion i that the dark clouds hovering OTer rnatiy industries would' soon disappear, and within a year trade would have ! i;;kerii a turn. There, need be no despair I about the future of British trade. I The Government was anxious to deI vt'lop trade with the Dominions, but a £'l fer capita increase of this would t.nly amount to £20,000,000. while a farthing a week per capita increase in trade with India would mean £60,(XX),000 yearly.

BRITISH COAL MINES.

INDUSTRIAL BOARD APPOINTED, j vLlU'i'lSn Uf'i'lCJAL WIr.EI.ESS.> (Received November 24th, 5.5 p.m.) ; RUGBY, November 23. The Secretary for Mines, Mr E. Shimvoll. lin<i nniuumwrl ihr> composition of the Coal Mines' National Industrial ' Board appointed under the C'onl Mines Act for the hearing of disputes between the coal-owners and the miners. Some difficulty and delay have been caused by the refusal of the Mining Association, the Federation of British Industries, the Association of British Chambers of Commerce, and the Confederation of Employers' Ori;;.nisations to make nominations. The "Manchester Guardian" sayw: "The constitution of the Board will command confidence, as it is representative of the owners' side as well as on the miners' of considerable sections of the industry." No Soutli Wales or Scottish owner had consented to sit, but the ccalowners' associations in other districts were mors friendly.

GOLD-MINING. PROSPECTS OF REVIVAL. [THE PRESS Special Sorylcc.J AUCKLAND, November 24. An optimistic note concerning tho revival of gold-mining in New Zealand was sounded by tho Hon. A. J. Murdoch, Minister for Mines, this morning, when speaking at the United Party reception to Ministers and \'isiting members of Parliament. "We hope in the near future," ho said, "to be able to report that gold mines are taking a turn for the better. We are aiming to develop the gold resources of New Zealand. We have quite an area at Thames and Coromandel, -which, I believe, will pay for development. We are now prospecting there, and wo are seeking to discover means by which low-grade ore can bo treated satisfactorily. "In the South Island wo have on tap quite a number of propositions that will be of advantage to the community, and which may create quite a mining boom in the South Island. They will provide work for men, and produce a considerable amount of gold for Now Zealand. In one South Island proposition, if the borings are found to be correct, and I believe they will be, £3,000,000 will come to New Zealand ior gold alone.'''

OKARITO BEACH COMPANY. .PiiJSEa ASoOCXiTIOi! - DUNEDUnT, November 24. Ad pica , received from the Okarito Five-Mile Beach Gold Dredging Co.'s engineer says that the third wash-up in shalow ground, in the new paddock in the viennity of No; 25 has returned ■4Cos for three weeks' work.

FREIGHT ON WHEAT. 1 THE TEN PER CENT. INCREASE. j - I REPRESENTATION'S TO | MINISTER. | The recent Railway Commission, in its recommendations to the Government, referring to Class B of the rail- j way tariff, stated "that the goods J carried under this class are of the pro- I duce type, such as grain, potatoes, etc. j Xt id recommended that, except in the ease of grain, a ten per cent, increase be made in the classified rate. The estimated additional revenue will be £.12,000." , , The Gazette containing the neheduie of" the nc.v rates recorded an increase of ten per cent, on class E, there being no reference to the exclusion of grain, us recommended by the Commission. The New Zealand Wheatgroivers' Association has taken the matter up, and h.-is wira-l to the Hon. the Minister for "Railways as follows: _

"Press reports in reference to tariff increases publishes your statement to the effect that the Railway Commission's recommendations were being pivon effect to. Gazette Xo. 79 shows increases all goods Class I*, whereas Commission recommended all K r ii!r!? should be excluded from increase. Will you kindly advise if it is increase should apply to wheat. \\. W. .MulholUuid, chairman _ New Zeauuid Wheat croweiV Association. Evidenco given before the Railways Commission when it sat in Christchurch

showed that a ten per cent, increase in fi eight on wheat alone would amount to .CSOOO per annum. The Commission estimates the increased revenue irom all Class E produce other than grain at ii!2 000, so that the inclusion or gram, narticularlv wheat, would far exceed the Commission's recommendations as tar as additional revenue under this classification is concerned. On an average wheat crop of between eight and nine million bushels, at a haulage ot -id a bushel (on "the low side), the total railage cost to the growers is between & SO,OOO and £IOO,OOO per annum.

CANADIAN WHEAT POOLS

government help for banks. .-•.-jaij rrujiaj association —ET ELXCTHIC Tl3l.BOIlA.rH— C 0 P V 3.1 G HT.) ''lvoc-eivod November -Hh, 9 p.vri.) OTIxVWA, November 23. It, is unofl'einlly stated that the Federal Goverumenthas assured the brink* thnt it will stand temporarily behind them m any immediate steps taken to i.ssist the western wheat pools through too present crisis.

CENTRAL OTAGO ORCHARDS. GOOD CROPS ANTICIPATED. [THE PRESS Bpoetal Service. J DUN EDI N, November '24. • A. Dunedin fruit expert, who has just completed an .extensive tour of Central Otago, says that the prospects 6f a <;oo4 *ensfin for tha. growers are better than they yvere ; last; year. It will be a fine season for .apricots, with satisfactorv returns from all other varieties of* fruit. The quality, taking it all round, should be good, as growers are now beginning, to discover the advantage of early ' thinning and that quality pays better than quantity.' Growers recngnise that with the trade depression .they may not obtain such high prices as in previous years, hut they are looking forward to fair, average values. Should the weather permit of stone fruit boing sent to the North Island, as in the past two vears, there should be no fear of any glut in the local market.

SYDNEY WOOL SALES.

LAST WEEK'S AVERAGE PRICE. (UNITED raE33 ASSOCIiTIOit —EI ELECTRIC TELEG3Arn —COrVaIGHT.) <Koceived November 24th. 10.30 p.m.) SYDNEY, November 24. At tho wool sales tho average price of wool sold last week was 8.3d per pound. Offerings at to-day's sale 'vrere 10.647 bales, of which 9893 were sold, as Well as &18 which wore disposed of privately. The prices were quite equal to last week's, with strong Continental and Japanese competition and fairly good support from other sections of the trade. Greasy merino made 261-rl.

MINING. MOUNT LYELL OPERATIONS. The Mt. Lyell Mining and Railway Co., Ltd. (Tasmania), issued a preliminary financial statement on November 6th, and the complete reportß and accounts for the year ended September 30th have since been made available.® Features of the accounts are the reduction from £SB to £4B a ton in the apparent cost of producing a ton of copper, and prospect of a further decrease being effected ats the progressive policy of the directors becomes fully operative. Ore smelted for the year wag 57,376 tons, from which there was produced 9817 tons of copper, 187,4890z of silver, and 56310u gold. The net profit on operations was £131,177. Dividends declared out of the year's profitß amounted to £128,919. The directors report that, despite the groat decrease in the cost of producing copper in the last few years, a furthei reduction is expected. Developments during the last two years have demonstrated that there are considerable tonnages of ore aseaying from 1.5 to 2 per cent, of copper in the Crown Lyell and Lyell Tharsis leases, and that a large proportion is available for extraction by open cutting. The large tonnages of 'ow-grado ores now proved are of great importance to the future of the company, although it cannot yet be asserted that all such ores can be treated profitably with copper at the present price, and under present conditions. The directors expect that the output of refined copper will be at the rate of 13,000 tons a year as from January nest. MOTOR EXHIBITION. <VRB}3B I.BSOCIA.TXO& T£LEOSi.WO INVEfROARG LLL, November £4. The British Motor Exhibition was opened here this evening. It is a magnificent display, including motor-cars, motor-trucks, motor-cycles, bicycles, and accessories, all of British raanufiictuie. Occupying a prominent position is the Golden Arrow, in which Sir Henry Segrave established a world's speed record The exhibition continues for a week. '

CHRISTCHUKCH STOCK EXCHANGE. YESTERDAY'S TRANSACTIONS. There wai > a moderate Lur.iovor oil Call yesterday, dealings being restricted to a lew lines. Transactions, exclusive of vestibule business, included : —- £IOOO Banks Peninsula Power Board, 6 per cent., 3 958. 100 Aust. Bank of Commerce. 250 Comm. Bank of Aust. 15 Bank of New South Wales. 200 Goldsbrougli, Mori,. 300 New Zealand Breweries. 8 Colonial Sugar. 100 Electro. Zinc (pret.'.

i Banks Peninsula Power Board G per j cent. 1958 debentures changed hands at. | £lOl or, market closing 10s on either | side. Australian Bank of Commerce (shares cased to 19s, closing quotations I H»s buyers, 19s od sellers. Commercial Bank of Australia shares had dealings at 17s Id and 17s 2d, and there were further sellers at 17s 2d. buyers at 17s. Sellers of National Bank of Australasia paid shares, cum dividend, reduced their limits to £6 4s Cd, buyers at £5 19s Od. Bank of New South Wales shares were 2s 6d weaker at £313 s_s, market closing £32 buyers. £32 7s 6d so Hers. Miscellaneous.

Goldsbrough, Morts remained at '22s, sillers staying in ut that figure, buyers at 21s 9d. Dalgety and Company shores were offered at .Ch ss, buyers at £3 2s. Gear Meat shares >yere weaker with sellers at 35s od, buyers at 31s Bd. Unsupported sellers of Westport Coal Companv shares, cum dividend, appeared at liSs 6d. New Zealand Breweries wore weaker with dealings ai prices ranging from 42s Gd to -42s Id, and there were further sutlers at 42s Id, buyers at 425. Tooths Brewery shares on a eloso market were firmer 011 buyers' offers of 24a 9d, sellers at 2ts lOd. Colonial Sugars were released at £34 15s. market closing £34 5s buyers, £3t 17s sellers. Electrolytic Zinc preference shares remained at 18s od, and more w?re offered at that price, buyers :it ISs 4d. Buyers of Olcarito Gold Mininc: shares raised their bids to 6s 2d, sellers at 6s sd.

J COMPANY NEWS. AUSTRALIAN OPERATIONS. -Yesterday'a sn_.il brought tiotai 1 - -<- operations of a number of compares: Swan Brewery. A t'tcr writing: off £11,42 i A-,- j tion, the Swan Brewery Co I>t-- fP™ 0 " 1 ' company registered in Melbourne for'Vo half-year ended September 30 n, ' not profit of £55,352, compared with ''ss 873 for the corresponding period of i<?«a w:.h £25,825 brought forward, there a ' -7m £81,177. Dividend on tho e V\~ I preference shares takes £ls&q . A-v C ) pfcarehold-ers received 23 a in; £3-1,036. Reserve fund is strengthened ' bv transfer of £JO,OOO, and £g s |S 6 '1 Sa ® d , served for income tax. The amount carried ; forward tor the curreot term i 3 £26 043

IX and W. Chandler. ,l.''ircctor3 of D. and "W. Chandler ] h hardware merchant company, of Melbourne' propose to reorganise the capital of £SOO 000 by consolidating the issues of preference shares, including thoee ulready issued into one group of 100,000 8 per cent, fixed cumulative preference shares, preferential both us to dividends and capital, ar.d 400,000 ordinary sharea. There are at present 67,500 first preference and 5000 second preforence shares. The proposal is the outcome of difficulty experienced with the interpretation of the provision governin- preference issues subsequent to the 6rst°iasue. Tiie directors state that only in exception ally fa-rourable circumstances will further ißEues of preference shares be considered. IXcnry Jones Co-operative.

A comparison of balance-sheet figures of 1 the above company to October Sift shows 1 an increase of £26,179 in the amounts due i to associated companies. The assets lumped j in one line as investments in jam manufac- ! turing and fruit companies In four countries., are valued £2301 higher. ' 1925. '930. j Net Profit-- ~ " j Within Australia 115.51S 71,451 j Outside Australia . . 44.519 40,366 Total . . 100,637 118,347 Dividend, p.c. 1 7 J ; Amount ot dividend ll!,90-> 107,263 i To reserve 18,720 1 1,08-* ] LIABILITIES— j Capital .. 1,420.47 ft 1,430,17.". Premium :n nliarea 5i,9&i £O, 03S General reserve . . 305,296 324,025 Due 1t» isubsidiarcompanie.s 2(35.05S 20 1.237 Sundry creditor* "02 ASSETS— Shares and interests in companies in Australia, South Africa, New Ze.v ' land, and ' England ■ • - Reduction in dividend has been made necessary, tho directors state, by the present position and obscure prospects of industry. JJo distribution of profits could have been considered at- present bad it not, been for the .very, satisfactory returns derived from investment* outsido Australia. The directors intond to ,continu»> the policy of dividend payments only from the aetual earnings of the current year, and fo maintain the integrity of ,the company's reserves. Bast Greta Coal. A loaa of £22,307 was incurred by the East Greta Coal- Mining Co., Ltd.. for" the -/ear ended September 30th, compared witu a loss of £94 06 for the previous year. \ddinc a debit of £1903 brought forward, there i* a debit balance of £2-1.310 carried forward. Receipts fell nvroy £Ci.B;>o, or | more than half.

Common-wealth Oil JSefineriee. FtiPantiion in activities of ths Comxrionwealth Oil Rc-'',r,eri»«. Ltd.,'with acconrpai;;--ing increase in net profH, m reflected it the financiil. sUtccienU o£ the company the year <o June 30th Ust. In the period, the company cleared r.at profit ol £42.450 frora a ktoeb total of For 1929-30. the flrares were £51,944 net from £1 78,51 fi gross. Deduction for depreciation from the grocs Amount fur th<; year last completed, v-ss £90,174, v.-hic.i v.*r £l2 530 more than the sum so appropriated in 3023-' i». and for taxen the latest aU ?_" a " tion van i' 27,500 as BSAinut £1*5.250. I I'board intends to transfer the r.et pru.t .o thfl profits invested in extension * trou ". which, with that' addition, wi.l aggrecra-e i"J 82,036. Paid capital of th« company _t» i' 750.000, of which the commcnwral. . Government holds i"3<o,oni in XI . - » . and the Aflßlo-PerMan ■ Oil 'To. a..a nr/mineca, £374.090.

HIGH COMMISSIONER'S REPORT. "I*HB PRESS Bpoelii fcernce.l WEtAINOTdN, November 21. Tic U«partment of Agriculture has received the following cablegram, dated 22nd inst., from th» High Commissioner for N»w Zealand, London: — TALLOW. . Poor demand, at auction. Four liuudred and sixty-five packages were offered and 109 sold. Present cuotations for spot are: ton, floe 31s, Fair to good 27a to 28c 6d, dark to dull £ss Gd to 26e; beef, sweet and/or mixed 2ss to 30s, fair to good 2t>e 6d to 27ft 6d, dark to dull 24s to -us; fair to good 25s 6d to 27b, dark to djtill 24a to 25e; gut, etc., 22a to 25a per cwt. HEMP. Manila—The market is quiet but steady. *'K** grade November-January shipment sold at £23. The output of Manila from January Ist to November Ist was 1,112,000 bales, agaJnat 1,357,000 for the same period last year. Stocks in Manila on October were 108,000 bales, • against 213,000 the same time last year. Stocks in England are 14,056, against 12,107. Sisal—The market is steady. Business has been done in first grade good marks, November-January shipment, at £22 10a to £22 15b, fair Hverage quality first grade £22, first grade tow £lB 10s. New Zealand —There :a a little more enquiry for immediate shipments, but no _ interest in distant consignments. The nominal value of November-December shipment hijrbfair is £23 15*. fair £22 10s, common £2l 10s, rejected £lB 10r; to-v, necond grade £ls, third grad? £lcJ 10s., No first-hand salo3 are reported. WOOL. The Bradford market quotations for merino tops are firm. There is more interest in rrossbreds, but quotations are nominally unchanged. MOTVROA OILFIELDS, LTD. ASSOCIATION TELEGJiAIi.) NEW PLYMOUTH, November 24. Moturoa Oilfields, Ltd., report for the %veek ended November 22nd:—No. 1 well drilled to 3310 ft in sandy shale and mudstone. No development below SOOOft. Made cement bridge 2700 ft; allowing six daye to set before testing upper strata. DAIRY PRODUCE. (PjiBSS ASSOCIATION fRLRft; r*ir ) "WELLINGTON, November 24.

Cable advice has been received that members of the Importers* Association, Tooley street, London, are holding a meeting on Wednesday to discuss tho possible steps to be taken to arrest the present downward tendency of New Zealand dairy produce.

AMALGAMATION NEGOTIATIONS BROKEN OFF.

iNegoiiaiirtiiH tor* t*io aniaiguraatiou of six London provision firms with a total capital of £12,750,000 have broken down. It w&s announced last June that a provisional agreement to amalgamate their stores had been signed by Home and Colonial Stores. Liptone, Ltd., Maypole Dairy Co., Meadow Dairy Oo. ? Parks'- Dairies, and the International Tea Co. Because the companies are large pur* chasers of butter and chefese, tho prospective fusion was regarded as important to Australia and New Zealand.

MURCHISON OIL COMPANY. EXTENSION OF LEASES. At tbc annual meeting of the ilurchison Oil Company Ltd., to be bold at Auckland on Thursday, the following report will be submitted by the directors:— "Since the last annual meeting the direc* tors have been actively engaged raising l further capital to meet tile company's liabilities and consolidate the position pending a reconstruction. In February last ou* mineral prospecting warrants were due to expire, and Mr 8.. Babsett made a trip through Kelson and Murchison, explaining: the position to shareholders, and obtained substantial financial eupport. An appeal vra6 also made to other shareholders by letter, and altogether £1378 was subscribed. Application was then made for a renewal of our leases, and the final grant has now been obtained, thus giving the company rights for a. further five years, subject to payment of rentals. At present these are paid up six months i«: advance* and for the next two years rentals will amount to £BS approximately. In M*\rch the directors were invited to place a definite proposition before one of the leading English oil companies, and full data, m&ps, and proposals were sent to England. , After a good deal of delay and several cables had been sent, advice was received from the English company mentioned .that after full examination of our maps, reports, etc. f their geologists were of the opinion that the area of the sedimentary rocks* was too small to justify their interest. No criticism of Dr. Bossard'e report was made, and the only possible interpretation of their cable is that the potential field is not sufficiently extensive to warrant this big English company's interest During the period of these negotiations efforts ■ ,to iuterest other capital were stopped, bul.since then, both in " Australia and brokers have been approached. _ Unfortunately, considerable depression exists in both countries, and the parties apjyoaclied consider the present time quite unfavourable for raising further capital for any speculative enterprise, but that whea normal conditions return efforts would be mado to interest financial groups in the project. By the last outgoing ma ; l a farther effort has been rnaue to interest in our project certain people in England who are interested in oil production. The directors oonpider the position in New /iejf land does not justifv nny nnnonl mnae to the public, at the moment, and can only recommend holding on till conditions improve, meantime continuing their efforts to interest outside capital. The directors take this opportunity of again proclaiming their unshal.eable faith in the existance of a payable oilfield within the confines of the company s holdings at Murohi6on. The company*# assets remain unencumbered by any mortgage, ana application has been made for the return of £275 prospecting deposit in respect of the Mangles area. General development expenses u mount to £532, of which £333 is rental on Jeaaehold areas paid to the Government '■Travelling expense £64 were incurred during the campaign to ratse capital to rene«v lease, etc. brokerage was incurred in connexion with the sale of shares disposed of cince.-lait annual meeting. Calls in arrear remain the same figure of £IOO and the directors see little ebance of collecting this amount at the present. Sundry creditors £535 17s Bd, in* f. £302 salaries and wages to staff, £2OO liability for rents to owner* £33 tor sundries. It should bo noted that tbe amount owing to sundry credit-ore has boon reduced during the year by £526 12s Od, and it is expected that the amount now shown as outstanding can be farther reduced, and negotiations to this end are now engaging attestioa. of tie directors/ 5

LATEST QUOTATIONS Bu -era. 3e 11 era. - 3. 3. d. U.Z. Government Debentures-•i-j r> A r ccr.t. Ir.dcribrd, 1033 OS 5 OJ 0 0 !•* per cent. Bor.<l», IOCS - 10 0 ojj por o?nt. Boric)*, 1937 .. .. r*s -0 0 07 10 0 5i r>er ccr.t. Inscribed, iwt D7 10 0 prr cent. Inscribed, 1!W3 zo o 0 — 5j per cent. Bor.cc, * 1003 9-3 10 0 3} y-er cont Inscribe i and Bonds, 2936 oo 5 0 — Other Debentures— Banks Peninsula Power, 6 per rent., 19£6 . JOO lo (f M 35 0 X.Z. Breweries, Cor.da 1 1 9 ~~ Banks— Au&t. of Coumeit-e 0 19 o U 19 a Australasia 10 n 0 10 1* 0 Comm. of Auet. 0 17 0 0 17 2 Comm. of Auet. (pre:.) 6 7 0 — Comm. of Svdnev — 13 0 0 E., S., and A. G ti o e 6 National o/ Australasia. (£10 paid, cum div.) — 10 15 0 Katiou&l of Australasia, (£o paid, cum dir.) o 13 6 f. 4 6 '"ationaf of N.Z. (cum div.) a \1 6 S :« 0 New South Wales S3 0 0 32 7 6 Ncrfr Zealand (cum div.) 0 16 3 9, 16 V Union of Aust. , .. 0 12 0 9 13 0 Insurance — A.P.A. : 0 3 6 n ft $ Xaw Zealand 2 .3 O a 6 p Standard c 0 0 2 io 6 Itoan and Agency— Dalgety and Co,s ►j St 8 ti b Goldabrougn, Mort .. I 1 9 1 2 « J\.Z. Guarantee /Corpn. 0 7 0 0 7 6 Permanent Investment 10 0 6 United Building Society 0 15 0 0 15 9 Shipping— H udda rt-Pa rl;cr 1 6 0 P. and O. Deferred Stock (eura dir.* .. 3 3 0 2 6 0 Frosen Meat— Gear 1 14 3 1 Io 3 X.Z. (£1 paid) 0 8 0 X.Z. Kefrig. (10a paid) 0 2 0 0 3 8 Woollens— Kaiapoi ("L7e paio; u 8 0 11 0 Kaiapoi (7« paid) 0 3 0 — Kaiapoi (pvef.) 0 •3 0 —

CoalGrey Valley fci;m 1 0 u I 0 6 Stockton (ord.> 0 16 Stockton (pref.) 9 'J 0 .Weatpoi't I 6 li Gas— Auckland 'conwr.,> y ,, Chriatch'urch 1 4 9 15 8 Cluistchurch (10a oaic) o n 6 0 13 6 Breweries— Carlton i a 6 ! fa 0 Monteitb's „ 0 19 0 Now Zealand 2 *3 0 3 2 1 «StaplcB 1 ID 0 1 0 0 Tooths 1 4 9 1 i 10 AVhito Slar 0 6 0 — Miscellaneous— . Allied Motor* 0 0 o, .... Australian Glass (cam div.) 1 6 6 1 7 11 Australian Iron a/:d Steel (pref.) — 0 14 0 Beath and Co. 1 8 0 15 8 Heath and Co (is paid) 0 4 0 O 5 0 British Tobacco 1 12 8 1 12 8 Colonial Sugar SI o 0 34 IT 0 iSlectro. Zinc (ord.) .. 0 12 6 0 13 6 K'eotro. Zinc (pref.) 0 13 4 0 18 5 Henry Jones Co-op. (cum div.) 1 1. 0 12 8 HoMen's Motors 0 8 6 — y.Z. Drug Co. — * 1 6 N".Z. Farmers' Co-op. (let pref.) .. — 3 10 0 N.Z. Farmers' Co-op. ("B" pref.) — 3 a o N.Z. Farmers' Co-op. per cent. Stock, 1940) 70 0 0 76 0 0 '\1>.Z. Farmora' Co-op. CG3f per cent. Stock, 16 o" !l e 1£>45) North Cant^. Co-op. Flour o in 0 0 15 0 United Pictures o la 0 1 2 0 Wilson's Cement (cum div.) 1 19 3 \Vunderlich ') li 0 — Evans Atlas Flour 1 8 0 — Kclipse Petrol (£1 paid) — 0 IB 6 Electric 0 8 9 0 9 9 Mining— Kawanu <» 0 0 0 « King Solomon 0 0 6 0 0 10 Mahakipanva 0 0 8 0 0 8j Mfc. Jsti 0 17 0 Mt. LyelJ (cum div.) 0 19 10 1 0 0 Okarito 0 6 0 o e 5 OHRISTCHURCH Sales op 'Change— A list. Bank of C'omme '«! ... 0 s. d. 10 0 Comm. Bank of Aust. 0 17 1 0 17 2 N"e\r Zealand Breweries (2) 2 2 6 / 2 2 3 '2.1 2 o 2 Colonial Sugar !'J) 2 2 1 34 15 0 Sales Reported Bank of New South Wales 5 0 Goldsbrougb, Mort 1 0 0 Banks Peninsula Power. (-5 per cent., 1958 101 6 0 New Zealand Breweries 2 2 44 Electro. Zinc (pref.) 0 IS 5 WELLINGTON, Baio Eeportod- £ s~ d. Commeroiai Bar k of AU£traiia. 0 1? 0

AUCKLAND. Sales on 'Change— £ 5. Bank of New South Wales o2 0 0 Colonial Susrar ... 34 15 0 Waihi Mining 0 11 0 Inscribed Srocw, 1936. o» 6 por cent. 99 19 Alounfc ■ LyfH • • 0 0 Auckland City, 1940, oi per U cent. 9-5 0 DUNEDlA Sale on Ciaug©— 3. a. Saw 2aakc<2 3r®v/ei-i«s ... o 2 3