GOLD-MINING.

Press, Volume LXVI, Issue 20096, 27 November 1930, Page 12

GOLD-MINING.

development urged in dominion. SOUTH AFRICA'S LIFE-BLOOD. Indicating the va*t extent of South Africa's gold production and its stabilising value, Mr John Dcynon, manager of Barclay's Bank in Pretoria, urged in an interview yesterday that both New Zealand and Australia should make every effort to encourage and develop gold-mining. He had seen prospecting in several parts of the Dominion, and he did not doubt that there was gold yet to be found and WC "The Band is the life-blood of South Africa," said Mr Beynon. "There are produced over 10,000,000 gold a year, worth roughly between £45,000,<&> and £50,000,000 and representing 60 per cent, of the worlds total supply. At any bank m South Africa you can present pound notes and demand sovereigns—and get them. One of Australia's greatest troubles is the interconvertible bank-note. In South Africa we can always get gold, but, curiously enough, we don't want it. * It is a remarkable thing that when there are gold supplies people would rather have notes; and when there are no supplies, people want gold more than anything."

Argentine Building tip Reserves. Although much of the gold was spent in tho Union on wages and materials, the greater part—every ounce that could be spared—was exported. It was bought chiefly by the Argentine and by India. The Argentine, for some reason, was building up its gold reserve. Tn India, because of a Mohammedan law forbidding the inheritance of property, there was a great market for bulk gold in the form . of jewellery and ornaments. Since they could not leave property, the Indians encircled their wives with valuable jewellery. "It always strikes me as somewhat paradoxical," continued Mr Beynon, "that gold should be brought up from shafts approximately 8000 feet deep and shipped away to be buried again in Argentine's vaults or the temples of India.'' High Costs of Mining. Although a gold mine was always to be regarded as a diminishing asset, the resources in South Africa were practically endless. Last year there ;vm a record production, and this year it would be even greater. Costs, of course, were very high. Sometimes £1,000,000 had to be spent to strike a single reef. Because of falling prices, the tin and copper deposits were now not so valuable. The tin, curiously enough, was all shipped to Singapore and thence to Cardiff, Wales. The copper came from the rich fields in Rhodesia. Africa, too, had more diamonds than she could deal with; they had to be released gradually to avoid flooding the market. SYDNEY STOCK EXCHANGE. MUCH BELOW NORMAL. It SITED PF.ESB ASSOCIATION—XT ELECTaIC TEI^EGBAPH—COPHUGHT.) (fieceived November 26th, 9.20 p.m.) SYDNEY, November 26. Business 011 the Stoek Exchange is quiet and much below norihal. Commonwealth bonds continue to show irregularity, while Bank shares are easier, including Bank of New South Wales, which dropped a point to £33 2s 6<L A statement has been issued that this bank's accounts will be released at the annual meeting to be held on Friday. ! JOHNSONVILLE STOCK SALE. [THJS PUSBB BptciiLl Serrlct.J WELiLINGTON, November 26. At the Johnsonville sale an average yarding crt very fine quality cattle was offered. Competition was good at .prices 10s to 15s below the rates ruling last week. Sheep came forward up to the usual numbers, and a total clearance was effected at auction. Prices for all clasess of sheep - offered, showed a decline on last week's rates, wethI ors being easier to the extent of Is 6d per head, shorn hoggets 2s 6d to 3s, ewes 2s to 2s 6d. and lambs Is to Is 6d. Extra heavy bullocks sold up to £l7 15s; prime £ls 12a 6d to £l7 ss, medium £l4 to £ls ss, light £l2 5s to £l3 10s; heavy wethera 30a 6d to 32s Id. medium 18a 4d to 80s Id, shorn hoggets 15s 2d to 18s fld, shorn ewes 9s 7d to 13s 2d, lambs 153 to 20s lii. DAIRY PRODUCE. Dalgety and Company, Limited, Christchurch, havo received from their London office, under date November 26th, the following cablegram: Dairy Produce—Market weak; prices for bvtter and cheese 3s per cwt lower.

INFLATION DANGERS. A SINISTER PROPOSAL. "Putting it into plain English, inflation- is nothing but borrowing from ourselves and paying ourselves with valueless notes," states a Melbourne financial house in a circular letter to clients, in which they discuss the position of public finance and condemn Federal and State Governments for not talcing proper steps to reduce expenses. "It is somewhat difficult to understand how anyone with the smallest knowledge of finance can endorse the extremists's recommendations," states the firm. "Inflation is their chief plank, and is expected to be a solatium for all our evils.." One of the fundamental practices of the modern banking system, the firm points out, is that it shall be separate from and entirely independent of politics, but the extremists seek to obtain control and use it in accordance with their own ideas. The result would be that the remaining wealth of the country would be rapidly dissipated. Beferring to the "fallacy" that the banks are unduly "holding up credit," the firm state 3 that it would rather put it that the banks are "upholding the country." "There is not the slightest doubt," it continues, "that the continued financial stability of the banks is the most vital iaetor in the weathering of the present storm by this country. If the members of the Party which is at present in power should gain control of the banks this stability will be forfeited, and there will be nothing to save this country from financial disaster. That the banks are lending to their utmost, consistent with sound finance and with safety, is obvious from the quarterly returns published from time to time. Doubtless, our Badieal friends would be the first to protest if they felt that their own deposits were being endangered by unwise and indiscriminate lending. In our opinion the banks have preserved a policy in the past which may assist this country to survive the present crisis, and are carrying out a policy now of the utmost loyalty to their country, and one which, if followed by others, would lead qnickly to recovery. The effort of some politicians to secure control of these institutions is the most sinister proposal which has been put forward during recent months."

SHARE QUOTATIONS. (CSTTSD PRESS ASSOCIATION —BY ELECTRIC TBLXQBA2H—OOPYRIGHT.)

Dalgety and Company, Limited, Christcl'urch, have received from their London office, under date November 25th, the following message in regard to the tallow market : The Best London sale will take place on Deoemher 10th

N.Z. TRADE. NEW SOUTH WALES PROFITS. A YEAR'S FIGURES. (*KOU OVB 0»'» COBaBSi-OUDBKT.J SYDNEY, November 20. Trade figures for New South Wales for the year ended June 30th last have just been released, and they show that the most profitable trade conducted within th. Empire was with New Zealand. The Dominion took goods worth £2 613,616, and sent across the Tasman in return wares that were valued at only £753,489, the tilt being favourable to tho State to the extent of £I,BOO, 127. . If every country with which New South Wales trades could show a similar result there would be no depression, and Mr Lang would not be worrying his head wondering where he was going to turn for a loan. The total trade of the State for twelve months was valued at £92,882,029, of which imports accounted for £.57,120,222, and exports for £35,761,807. The visible reBult, therefore, was £21,358,415 against the State. Exports from New South Wales to the United Kingdom represented a total value of £11,622,586, while imports from Britain were valued at £22,189,125, so that there was an excess of goods inward of £10,566,539. Even Canadian trade showed a balance against the State of £1,202,832. Business with Belgium left a favourable balance of £1,480,249, and with France the trade account showed an excess of £3,765,077 of exports over imports, whilst dealings with Germany resulted in an excess of exports valued at £886,954. In the aggregate trade with non-British countries was valued at £45,648,618, including imports £27,075,390 and exports £18,573,228, the balance being against the State in the amount of £8,502.162. Exports to the United States were valued at £3,390,697, but imports from that country were computed at £13,946,799, making the excess of inward goods £10,556,102' the biggest balance in the foreign schedule. Last month's exports were of a total value of £3,030,065, which was an increase of £792,235 on- the September figure. Exports of woo! during October accounted for £1,506,518, which was £522,464 more than the sum contributed by that important item in the previous month. Of course, imports are now showing a heavy decline, and it should not be long before the balance is in favour of the State. At the same time it must be years before the State recovers fully from the trade shock it has received.

THE AUSTRALIAN DEPRESSION. OLD STORE'S FATE. LAND COMPANY IN DIFFICULTIES. freo«l OUR OWIB COBRESPONDENT.) SYDNEY, November 20,

Hard times, uproarious shareholders' meetings, and now the receivers (the Commonwealth Bank), whose move marks the last dramatic chaj'ter in thp sad story of one of Sydney's oldest and best-known businesses, the Civil Service Stores. That the axo has fallen on

this old city concern is a sign of the times. Its fatj is an exemplification of the fact that there is a right and a ■wrong side of a street for business. It was at the zenith of its prosperity when it left its old site in Pitt street and shifted to palatial new buildings in George street on that side of the street to which it is difficult to attract shoppers. Since then it appears to have had more than its fair share of troubles. The history of the old Civil Service Stores is largely the story of Sydney in its latter years of development. Not merely was it on the wrong shopping side, but, to many shoppers who might otherwise have been attracted to it, it looked too genteel. In its new homo it had that well-bred, somewhat exclusive ajjpearance, that does not always pay in business. The announcement that the shareholders will shortly be called together to put into voluntary liquidation the ! well-known Sydney real estate business known as Arthur Rickard and Co., Ltd., as a result of difficulties arising out of the depression, has evoked very sincere and widespread sympathy in the city for the head of the firm, Sir Arthur Rickard. The fact that this extensive and well-managed business finds itself up against things is yet another answer to the argument in many quarters that the dperession is either largely makebelieve or the work of designing bankers and capitalists. Since he is joined personally in the covenants of mortgages, and has guaranteed various sums aggregating a very large amount, Sir Arthur Kickard's position, and that of his family who are also large shareholders, can readily be imagined. Sir Arthur—a likeable man and an influence for good in the community—has had more than his share of bad luck lately. There is no question but that he will rise superior to his and his compf.nv's difficulties once the outlook improves. Care has been taken to protect the interests of Rickard's land buyers under the liquidation proposals.

P.O. SAVINGS BANK. HEAVY WITHDRAWALS. The Post Office Savings Bank returns for the five years ended September 30th com-

In the six years the deposits aggregated £140,612,388, and the withdrawals to £149,369,409, the excess of withdrawals for the period being £8,757,021. la the last year the deposits were small, while the with* drawals were exceptionally heavy, the with* drawais in the June and September quarters of this year being about £2,200,000. The Post Office Savings Bank allows ft generous rate of interest for what are practically demand deposits, "but notwithstanding this the amount at credit of depositors must be contracting.

HOW SHARES ARE HELD. MANY SMALL INVESTORS. The extent to which the interest of the average citizen is directly affected by fluctuations in stock markets was indicated at the half-yearly meeting of shareholders in • Electrolytic Zinc. "The idea is held fairly generally, and particularly by those directing the affairs of labour, that industries such as ours are owned by a few large shareholders—often expressed in the tern 'Capital/ *' the chairman said. "It is not sufficierttly recognised that during the laßt quarter of a century the expansion of industries in Australia, as elsewhere, has provided a field for the investment, with a reasonable measure of security, of the savings of a large section of the community who desire to obtain a somewhat higher return on their savings than that offered by the recognised gilt-edged investments.

"Without including the large holdings of the three Broken Hill companies, this company has 9560 shareholders, with an average holding of 235 shares. Of these 2892, or 30 per cent., hold 50 shares or less'; 5195, or 54 per cent., hold 100 shares or less; 6984, or 13 per cent., hold 200 shares or less; which only 292 persons or S per cent., hold over 1000 shares. Summing op, it may therefore be stated that the controlling interest in this, as in many other industrial concerns, lies with the average run of Australian citizens, who with lessened incomes are finding their position to-day exceedingly difficult.' 1

MJSTDJ MOToifc the increased turn ove|^ dealings on the LondS, were made at 33, the announcement, and tefSft reacting later to 37* m Sf **? ta three

The 1928 fijnreg inelui, dbti*. M 7 per cent, preference nkiw. « 6 to December 31st, 19287*3 £*£>]* cent, for three years to 92 The 1929 figures include 1 P fw fi ent " pre, ?"?« 4 on the 6 per cent, tor SI -vmV. 1 bet 31st, 1929. 01 * Sitq

LONDON, November 25. S&are Quotations included the following: Nov. 11. Nov. 2o. £ ». d. £ s. d. Bank of Australasia. .. 9 18 9 9 5 0 Bank of N.S.W. .. 28 10 0 98 5 0 Union Bank of Aust. 8 16 9 8 1 3 National Btnk of N.Z. 5 18 9 5 11 10j Sank of New Zealand (4 per cent, debentures) .. 95 0 0 94 0 0 Bank -O£ New Zealand (shares) 3 13 9 2 14 3" N.Z. Loan and Mercantile. 4 per cents. .. 68 10 0 69 10 0 K.Z. Loan and Mercantile (shares) .. 80 0 0 83 0 0 * dividend. QUOTATIONS FOR SILVER. OFFICIAL WIRELESS.) RUGBY, November 25. Silver is quoted as under: — Spot—16Jd per ounce. Forward—16Jd per ounce. FOREIGN EXCHANGE RATES. (BRITISH OFFICIAL WIRELESS.) RUGBY, November 25. The following are the current rates of e» chance, compared with those of November 20th and par:— Par. Nov. 20. Nov. 25. Paris, fr. to £1 124.21 123.644 123.614 Brussels, belgas to £1 35 34.83 34.824 Oslo, kr. to £1 16.159 18.15J 1Mb Copenhagen, kr. to -£1 18.159 18.16 18.155 Stockholm, kr. to £1 18.159 18.09J 18.014 Amsterdam, fl. to £1 12.107 12.07$ 12.062 Berlin, Reichmarken to £1 .. 20.43 20.38 20.364 Montreal, dol. to £1 4.866 4.65 5-32 4.84 29-32 New York, dol to £1 4.866 4.85 23-32 4.85 Prague, kr. to £1 164.25 163J 1632 Geneva, fr. to £1 25.225 25.05J 25.07J Milan, lire to £1 .. 92.43 52.764 — Vienna, schgs. to £1 34.585 31.49J 34.494 Helsingfors, marks to £1 193.25 193 192| Madrid, pesetas to £1 25.25 42.90 43.23 Lisbon, oscudos to £1 4.50 108.25 108.25 Athens, drach to £1 375 375 375 Bucharest, lei to ill 813.6 818 818 Rio de Janeiro pence to milreis 4.985 4J 411-16 Buenos Ayres, pence to dollar 47.577 38 7-16 S8 11-16 Montevideo, pence to dollar 51 39 39 Bombay, pence to rupee 16 1TJ 172 Shanghai, pence to tael Hontj-Kong, pence to 342 19J 18J dollar 24 15 S-16 15} Yokohama, pence to yen •• -. 34.58 34 17-32 24 17-32 TALLOW.

pare as under: — WithExcess of withDeposits. drawals. drawals. £ £ £ 192Q . . 30,264,951 81,227,574 962,623 2,856,720 1927 . . 27,699,431 30,556,151 1928 , . . 27,426,375 29,139,646 1,713,271 1929 . . . 28,471,429 28,152,021 *319,408 1930 , . . 26,750,202 30,294,017 3,543,615 *Excess of deposits. .

Gross profit Depreciation, Seven month* to July 31 1930. £ 858,187 T»lh, ®«-n. wis; lllfc, •Oft, *»iu iite <38 *ftSi etc. Debenture ser245,045 430,4Jo vice Income tax Net profit .. Brought for78,750 150,000 384,342 135,000 "2,177 6 S#.T«» ward Available 7 p.c. pref. div. S p.c. pref. div. Pref. ord. div. 73,952 460,294 7,911 35,000 67,813 09,750 60 59.e«4 «M$J M.000 SW,0«o Ord. dividend Do. per cent. Ufl,2to S3.SM Carried for39 ward .. 279,820 . 78.951