FIANCE AND COMMERCE

Press, Volume LXXIV, Issue 22514, 23 September 1938, Page 15

FIANCE AND COMMERCE

; SECOND DAY OF LONDON WOOL

SALES

.'STERLING EXCHANGE FALLS AGAIN

Competition was again active on, the second day of the London wool sales. Most of the offering sold at full rates and greasy crossbred favoured sellers. Commenting on the open“g of the sales - H - Dawson and Sons say there was no definite • -- trend but day-to-day fluctuations must be expected.

The Reserve Bank return, gazetted last evening, shows that the sterling exchange reserve has fallen by £434,338 and stands now at £12,247,006 (in New Zealand currency). Demand liabilities to the State have risen by £591,600 and those to the bank have fallen by £324,198. Advances to the Primary Products Marketing Department have fallen by £. 58,655 and those for other purposes have increased by £750,0g0.

LONDON WOOL SALES 1 •VARIATIONS MUST BE EXPECTED”

ALLIED MOTOR INTERESTS

RECONSTRUCTION PLANS ANNOUNCED

REDUCTION OF CAPITAL PROPOSED

B. DAWSON AND SONS’

The reconstruction of the Allied Motor Interests (Melbourne) group of companies is discussed in a circular which the directors have sent out to shareholders. The directors report that all the subsidiary companies except Ruskiq Motor Bodies Proprietary, Ltd., namely, Autocar Industries Pty., Ltd., the All-British Motor Company Pty., Ltd., Olympia Motors Pty., Ltd., and Tarrant Motors Pty., Ltd., have been liquidated, and their assets and liabilities concentrated in Allied Motor Interests, Ltd. The result of the operations is shown in a special balancesheet of Allied Motors as at June 30, 1938.

REVIEW

COMPETITION AGAIN ACTIVE . ON SECOND DAY < irwriß rasas Asaocxanos—coptxkhr.) jj LONDON. September 21. I Commenting on the opening of *the '•London wool sales, the firm of H. (Dawson and Sons directs attention to (the relative freedom of wool from the (consequences of the international situafjtton. but emphasises that the general [■trade situation must be viewed with anisgiving. The firm adds that exports have •been seriously disturbed and orders lost owing to fears of war, and considerable quantities, of . old contracts remain to be worked ofit. War risk insurance rates provided an additional encumbrance to traders. There was no definite trend, but day-to-day fluctuations must be expected. For the second day of the sales, 9795 bales were offered, including 3809 New Zealand, and 8499 were sold. There was a moderate selection and competition was again active. The -bulk sold at.lull rates, greasy crOssibreds favouring sellers.. New Zealand lots sold as follows'— A crossbred. NZWMA 9d to lid. «®uAliuin 9id to 9}d; slipe halfbred lambs, Canterbury 101 d to 13d, Three Stars 10id to IRd, Oakleigh. 12Jd to 13} d, Eclipse 9i<P to 12} d.

This balance-rheet shows that the deficiency of Allied Motor Interests, Ltd., after taking over the assets and liabilities of the other companies, amounts to £62,582, and the directors propose to remove this deficiency, except £2418, by reducing capital. Ruskin Motor Bodies, according to the circular, has a large accumulated profit in hand; and is in a position to declare dividends and pay them to Allied Motor Interests, but so long as the deficiency remains and Allied Motors remain heavily indebted to the bank—the balance-sheet shows an amount of £206,715 owing to the Bank of New South Wales—the directors will not feel justified in passing on the full aniount of any dividend received. The directors consider that the pest course to adopt to reduce the liability to the bank to reasonable proportions will be to obtain additional capital and they propose,, after the present scheme of arrangement has been put into effect and the deficit eliminated, to make an issue of preference shares, the exact terms and details of which will be disclosed later. At an extraordinary general meeting, to be held ni Melbourne on. October 18, shareholders will consider a resolution to reduce the capital of the company from'“£3so,ooo;'‘divided Into 100,000 preference shares of £1 each, 67,160 preferred ordinary shares of 10s each, and 432,840 ordinary shares of 10s each to £277,880, divided into 100.000 preference shares of £1 each, 67,160 preferred ordinary shares of 10s each, and 432,840 ordinary shares of 6« 8d each. The reduction is to be made by cancelling capital which has been lost or is not represented by .available assets to. the extent of ,3s 4d,a share on each of the 360.984 ordinary shares which have been issued and are now outstanding, and by reducing «oniinal amount of all of the ordinary shares in the capital, from 10s to «s 8d When the reduction is made, both the preferred “ordinary and ordinary shares are to become consolidated in such a manner that every two preferred ordinary shares shall constitute one £1 share, and every three ordinary shares shall constitute one-. £l share. Then all the 33,580 preferred ordinary shares of £ 1 each and the 144,280 ordinary shares of £1 each are to become consolidated one class of 177,860 ordinary shares of £1 each, ranking pari passu for all purAh approximate statement of the assets and liabilities of Ruskim Motor Bodies Pty., Ltd., as at fl J une shows undistributed profits at £70,309. The directors of Allied Motors say that the financial position of Ruskin Motor Bodies is. so-stable that the . company can immediately declare and pay dividends to the parent company. MILNE AND CHOYCE Gratification with the results accomplished during the last, trading year •was expressed by Mr J. S. Milne^ chairman of directors of Milne and .Choyce Ltd., when presiding at .the annual meeting in Auckland. A satisfactory increase in turnover had; been accompanied by higher profits, facts which spoke for themselves, Mr Milne said. This is the firm’s seventy-second year as a business, and its thirty-sev-enth as a company, so t_it . claim to rank as one of the old-timers, •continued the chairman. An ant move • was made during the .year bv linking up with the associated houses ofDavid Jones, Xtd.. for overseas buying. Included were eight establishments in Australia, and New Zealand, and they possessed a. very fine organisation overseas. Already the company had- felt the benefit of the combination, and would do so more during the coming season, which had opened promisingly. As with other businesses, they were faced with heavy taxatmn and problems arising from industrial le The companyts staff; numbered 606, who worked under 14 different award* TWa provided almost a whole time job for one individual. . w v The retiring. directors,. Messrs H. V. Choyce and R. S; Milne, were reelected. LONDON METALS MARKET (rxrr*D fbbss *»oci*tio»— coptbiowt.)

CLYDESDALES ON

SHOW

STALLION PARADE AT DUNEDIN

B. LOCKIE, OF EDENDALE, WINS CHAMPIONSHIP

fTHE PRESS Special Service.] DUNEDIN. September 22. The Agricultural and Pastoral Society’s fifty-fifth annual parade and show of en- - tire ' horses was held at Tahuna Park to-day. The attendance was. good without being unusually big, and comment on the quality of the, Clydesdales exhibited was generally favourable. The entries totalled 31. Robert Lockie. of Edendale, took the ttalllon championship, carrying with it the Donald Held Perpetual Challenge Rhield) and he also ; won the Wright Steirtienaoa Perpetual Challenge Cup wlth Noble ' Anchor (Dunure’ Footprint—Haviestoun Anna), the winner of the four-year-old or over class, who was making his nrst appearance at the Otago Society s fixture. TOe judge was Mr J-/R-1 McMurray_of Gore. His comment wits that the parade generally was a good one, entries beingtip to standard and batter- spread than they were last year. / The' awards were as follows; Four-year-olds or over (eight entries), first prize £7, second £5. third £3 — itebert Lockie’s (Edendale) Noble Anchor (Dunure Footprint—Haviestoun Anna) 1. Andrew Grant's , (Fairlie) Allandale Chatham (Desire—Cralgie Ella) 2, D. S. Brown's (Dunedin) Verdlea Moonlight (Scotland’s Superb—May Hazelwood) 3, J. H. Mitchell’s (Studholme) Oakfat Buckiyyie Boy (Bucklyvie Favourite —Lady Watson I) 4. Three-year-olds (seven entries): first, B£s, second £3. third £1 10s—G. ihnston’s (Oamaru) Comely Dunmore more Superb^—Rosalie Bell) 1, James e’s (Rang! ora) Thomprint (Hose—Bessie Craig) 2. R. W. Coubrough s Djcston) Crown Print (Roseprlnt—(Cherry Farm Pride) 3, P. W. Shacklocks j(Aw«moa) Glen Royal (Dunmore Superb “—Willow Bank Collette) 4. Two-year-olds (seven entries): first Prize £5. second £3, third £1 10s —Andrew Grant's (Fairlie) Allandale Dunlop "(Dunlop's Renown—Allandale Queenie) 1, Logan Bros." (Otama) Mossdale Winalot i<Craigie Crest—Mossdale Sarcelle) 2,. G. P. Johnston’s (Oamaru) Royal Superb (Dunmore Superb—Queen Ida)-3,-R. Hamilton’s (Tapanui) Rosfevale - (Roseprlnt. Blink—-Bonnie Rose) 4. One-year-old (seven entries); first prize £3. second £2, third £1 —R. Hamilton’s (Tapanui) Remarkable (Reputable— Snowflake) 1, D. Nemkln’s (Kelso) Meadows Roseman (Reputable—Meadows Eva) 3. Andrew Grant’s ' Allandale - Douglas (Allandale Chatham—Allandale Rose). 3, tojia - - Bros;’ ' ’ Mossdale Magnificent (Cralgie Crest—Lady Mossdale) 4. * . The champion stallion of the parade of' age ' was Robert Lockie’s. SkJFV.. -year-old Noble Anchor, which there-. won the Donald Reid. Memorial Perpetual Challenge Shield. ..There were three entries in the, class tor " the Wright, Stephenson Perpetual Challenge Cup for four-year-olds or over. Noble Anchor was the. winner here, too.

SYDNEY PRODUCE • ‘ MARKETS _ SYDNEY, .September 22., The wheat market is firm, but trades are pausing until the European situation clears. Silo grain is quoted •t2s 7Jd, and bagged to 3s .2d., . . ..Other quotations are:—Flour, £7 Ms; bran and pollard, £5 10s;' potatoes, Tasmanian £l3, others £lO 10s; Anions,-brown £ls; maize, white 4s 7d, Fellow.4s sd. .*>. • r BRITISH WAR LOAN RUGBY, September 21. , War Loan, 3J per cent., is quoted at AIOO 10s, « tall ol Ss.

RESERVE BANK RETURN

Sterling Exchange Falls Again \ DECREASE OF £434,338 The Reserve Bank return for the week ‘ended. September 19. gazetted last evening, Is- balanced at £25,182,998, or £268,827 more than at the close of the previous week. The note issue is lower by £62,510 and stands now at £13,565,659. Demand liabilities to the State have risen by £591,600 and those to the banks have fallen by £324.198. Other demand liabilities are £42,205 higher. Liabilities in currency other than New Zealand have increased by £7831, and other liabilities are £13,899 On th'e assets side, sterling exchange has again fa11en—£434,338. It now stands at £. 12,247,006 (in New Zealand currency). Advances to the Primary Products Markettng Department have fallen by £58,655 and those for other purposes have increased bv £750,000. Other assets are £13,111 higher. The statement with variations compared with last week is as follows:

MINING BIG RIVER The Big River report for the week ended September 15 is:— No. 5 Level—North Stope: Filling commenced. Reef considerably .broken, but shows signs of improving next lift. North drive: This was not worked, owing to the shortage of labour. Men employed in north stope. No. 4 Level—South stope: Stone 2ft Sin wide and of fair grade. No. 6 Level—The end of old workings are 10 feet distant. Battery—3l} tons of stone sent to the battery. BLACKBALL CREEK The • Blackball Creek dredge return for last week was 51oz from 14,000 yards treated. RAILWAY WORKING ACCOUNT / FIGURES FOR PERIOD ENDED AUGUST 20 . (suss iuoeunex tzlsokik.) WELLINGTON, September 22. The railway working account for the four-weekly period ended August 20,

•Minus. Total revenue from April 1 to August 20s 1938, was £3,309,318. Total expenditure mirius £6492. Totals for the corresponding period last year were: Revenue £3,184,305, expenditure £3,013,500, net revenue £170,805.

LONDON, September 21. Sept 20. Sept. zi._ Coppery- .; Standard, spot Forward £ s. d. 42 10 10i 42 19 ~4J £ s 42 10 42 14 48 0 49 0 a. 7* H 0 Electrolytic .. to • • ,48 0 49 0 u 0 0 Wire bars 49 0 0 49 0 0 LeadSpot Forward' • • • 16 0 16 3 7* li 15 X 18 16 0 U 7J Spelter— ■ Spot • • Forward .. :14 5 14 11 7* 3 14 7 14 11 6. 101 Tin —‘ . Spot • • 395 17 6 195 7 6 Forward 196 12 6 196 2 6 Silver— Fine, per oz 191 d 191d Standard ,apid aoid peroz. ..

Liabilities Variation £ £ (1) General . reserve 1,500,000 Same (Z) Bank, notes 13,565,659 — 62,510 (3) Demand liabilities— (a) State 3.704,251 4-591,600 (b) Banks 5.943.029 — 324,198 (c) Other 327,903 4-42,205 (5) Liabilities in currency other than New Zealand 17.263 4-7.831 (6) Other liabilities 124,895 4-13,899 Total 25,182,998 4-268.827 Assets (7) Reserve— (a) Gold 2,801,791 Same (b) Sterling exchange 12,247.006 — 434,338 (8) Subsidiary coin 228,015 — 1,291 (10) Advances— (1) Primary Products Marketing Department 3,281.202 — 58,655 (2) For other purposes 3,800,000 4-750,000 (11) Investments 2,732,065 Same (13) Other assets 92,919 4-13,111 Total 25,182,998 4-268.827 Proportion of reserve to notes and other demand liabilities, 63.853 per cent. (66.428 last week).

1938, is:— • Net Rev. Exp. Rev. Section £ £ £ Kaihu 161 1,064 •903 Gisborne 1,605 2,489 *884 North Island main line & branches 317,766 353,164 •35,398 South Island main line Sc branches 197,020 227,188 •30,168 Westport 8,160 6,500 1,660 Nelson 587 1,904 •1,317 Picton 1,615 3,373 •1,758 Total railway operation 526,914 595,682 •68,768 Miscellaneous services .. 39,406 71,245 18,161 Total .. 616,320 666,927 •50,607