FINANCE AND COMMERCE

Press, Volume LXXIV, Issue 22520, 30 September 1938, Page 15

FINANCE AND COMMERCE

STOCK MARKET REACTS * - * WAR LOAN JUMPS BY £4 ANNOUNCEMENT OF MUNICH CONFERENCE HEAVY TRADING IN DOLLARS ' (mxut rasa* issociatioii—coptsigbi.i ' '(Received September 29, 10 p.m.) LONDON, September 28. Hr Chamberlain's announcement tt«t Herr Hitler had agreed Jo a four- . power conference at Munich came too ' lite to affect many issues on the Stock Exchange, but a substantial reaction occurred among those in which the market usually deals after closing hours. ' ;At 4 o'clock in the afternoon, the 3} per cent War Loan stood at £93, but when the announcement came it leapt to £97. Dollars securities advanced as much as five points. The wramble for dollars was intensified. - Opening about 4.72. they were bid " down to 4.60. However, the announcement caused an equally emphatic selling movement and the dollar closed at " C7l. •-' Registered German marks closed at ..'■discount of 55 to 60 per cent., . whereas it was offered, at one time at ""■ discbunt of 68 per cent. GAINS ON WALL STREET PRICES ADVANCE BY UP TO SIX POINTS " «BUBST OF BUYING f SELDOM EQUALLED »• (unru rtsa* 4S»ociatio»— coftkiqbt.(Received September 29, 10 p.m.) NEW.YORK, September 28. The Stock Market, which has been losing ground every day because of the European crisis, revived remarkably after Mr Chamberlain's announcement of the Munich conference. There was a burst of buying . which hat .seldom been equalled on Wall Street Prices gained one to six points, and trading reached a 3.500.000 share day basis. United States Steel, General Motors. and other industrials found most willinf buyers. Sterling, which had reached 4.62 •■covered 11 cents. BUYING WAVE IN SYDNEY PRACTICALLY ALL SHARES RECOVER .* twiwii efforts for peace in Europe ~ wave of buying on the Sydney • Exchange yesterday. for '■l ,, t*actlcau> all shares recovered as dra- ~"\ *ftlnHy M they fell. Government loans ' ,' ••*> rallied strongly. The day's turnover f'. *•■ twice that of any day for more than "SvfJ week.'

Be* Press" Classified AdvertiseBlpagata are read at the breakfast tablrHBtpa are sure to deliver results durine ■Hat day—l2 words Is. 3 insertion" llfi W. 'Phone 33-358. -6

RECOVERY IN SHARE MARKETS FURTHER FALL IN STERLING EXCHANGE Renewed efforts for peace in Europe caused a recovery in the share markets throughout the world yesterday. Mr Chamberlain's announcement of the Fouv-Power conference in Munich was made just before the London Stock Exchange closed, but there was a substantial reaction among shares in which the market usually deals after closing hours. An extraordinary wave of buying swept Wall Street, and prices advanced by up to six points. In Australia and New Zealand, leading shares recovered practically all the ground they had'lost in the last few days.

The Reserve Bank return for the week ended September 26 shows that sterling exchange has again fallen heavily—by £797.559. It stands now at £11,449,447.

There was an active demam. for crossbreds at the latest salt in the London series and slipes sold well at 5 to 10 per cent, higher than at the close of the last series.

At the Sydney wool "ales, price, were firm and occasionally higher. Competition was well maintained from Yorkshire with fair support from the Continent and Japan.

COMPANY NEWS MYER EMPORIUM The volume of. sales of Myer Emporium, Ltd., for the year ended July 31 was larger than in any previous year, and profit rose from £376,011 in the preceding year to £379,369. Provision for taxation took £60.000, compared with £55,000 in the preceding year, leaving a sum of £319,369, comI pared with £321,011. After paying the 9 per cent, preference dividend of £56,990, there remained £260,379. Ordinary distribution is maintained at 9 per cent, (interim 3, final 3, and'bonus 3 per cent.), requiring £155,250. The directors propose to transfer £20,000 to a reduction of property account, to transfer' £SOOO to staff superannuation fund, and £50,000 to general reserve. Staff partnership interim and final dividends of 6 per cent, required £5970. The directors state that subsidiary investments yielded satisfactory returns for the year. WUNDERLICH'S DIVIDEND Wunderlich, Ltd.. has declared interim dividends of 3J per cent, on all classes of shares for the half-year ended August 31. The interim dividends last year were 3 per cent, on the ordinary and first and second preference shares, and 3J per cent, on the ' third preference shares, but with the final distribution 7 per cent, was paid on all classes. AUSTRALIAN PAPER . MANUFACTURERS Profit -of Australian Paper. Manufacturers, Ltd.. for the year ended June i 30, was £240,055. after providing: £119,224 for depreciation and obsolescence of fixed assets. This profit compares with £218,179 in the preceding year. The company is the operating company of Australasian Paper and Pulp. Ltd., and Cumberland Paper Board Mills. Ltd Although a substantial increase in profit is shown in the latest accounts, the new preference capital was not fully reproductive in the period under review. The 6 per cent, preference dividend takes £55.477 and the ordinary distribution to the holding companies is £159,000. or 9.9 per cent of the ordinary capital as at June <JO. The directors have reserved £2500 for loss of profits, and have transferred £25,000 to general reserve.. In their report the directors state that commercial operations on the large new 132-inch board machine at the Botany, New South Wales, mill began last April. This machine is reported to be working very satisfactorily. The company is n°w stated to be able to meet all demands of the Australian market for carton, box and container boards in general use. It fs expected that, product on. of wood man at the Maryvale mill on .a full commercial basis will begin next April or May. MOUNT MORGAN SHARES HOLDINGS IN NEW ZEALAND More than 600,000 of the 2.348,000 2s 6d shares in Mount Morgan; Ltd. (Queensland), are held by New Zealand shareholders, according to Mr A. A. Boyd, chairman and managing director of the company, who is spending a holiday in New Zealand. "As evidence of recognition of this great body of shareholders, an_ expressed wish that New Zealand shareholders should be represented on the board has been given effect, said Mr Boyd. "Nominated by the New Zealand committee, Mr J. R. D. Richardson, 0.8. E., 8.K.. of Sydney, will be elected to the board at the forthcoming annual meeting." Mr Boyd also commented upon the progress of the company's new plant. It was hoped that in the near future the company would carry its processes as far as turning out blister copper, and that arrangements to refine this output in Australia would be made. LONDON METALS MARKET COPPER, LEAD, AND TIN RISE

RESERVE BANK RETURN

STERLING EXCHANGE AGAIN LOWER

DECREASE OF £797,559

The Reserve Bank return for the week ended September 26, gazetted last evening, is balanced at £25,072,487, or £110,511 less than at the close of the previous week. The note issue has increased by £168,960, and deposits show considerable movement. Thuse of the State are higher by £209,343, and those of the banks have fallen by £556,885. Other demand liabilities are £53,597 higher Other liabilities have increased by £ 13.839.

On the assets side, the biggest alteration is in the sterling exchange reserve, which has again fallen heavily —by £797.559. The reserve now stand.' at £11.449,447 (in New Zealand currency). Advances to the Primary Products Marketing Department are lower by £122,595 and those for other purposes have risen by £700,000. Other assets are £111,714 higher. The statement with variations compared with the previous week is as follows — Liabilities

Proportion of reserve to notes and other demand liabilities. 60.785 per cent. (63.853 last week).

FOREIGN EXCHANGES

BANK OF NEW SOUTH WALES The Bank o£ New South Wales quoted the following exchange rates yesterday:— Buying. Sewing.

SYDNEY PRODUCE MARKETS

SYDNEY, September 29. The wheat market is steady, but trading is quiet Silo grain is quote*, to 3s 3d. and bagged to 3s 6d. . Other quotations are:— ' Flour— £3 10s. . Bran and Pollard— £5 10s. ' Potatoes —Tasmanian, £ls 10s; others £l3 10s. Onions —Brown, £ls. Maize—Yellow 4s sd, white 46 7d.

;/■'.- Moraine Sales £ s d. <»i#,£«inn*ercial Bank of Sydney .. 19 15* 0* SjfJBftj 0 * New South' Wales .. 30 0 0 2 12 ,0 1 1 11 '^A^HP***** 1 * Newspapers \ ... ►*#Mhony Hordern .. .. Ami i .ii in ri.„ 0 15 3 a a n H^><Hvr«KiM^H^^^H|^KKV| ll*?C!!** n HDl Pty 2 15 9 2 10 8 . Afternoon Sales SjfBk.crf New South Wales .. £ s. d. 30 10 0 »5«lonlal Sugar .. r.' 44 10 0 JH&ja*>i lated Newspapers fllfwgoclated Newspapers (pref.) 1 0 11 119 llmgjMalde Steam 1 12 0 fKBuiis, Philp - 2 10 6 Gas A (old) ■l?.'ii""«h Tobacco IRS* 18 7 10 2 7 0 2 12 0 19 6 P*i©- J- Coles '.'. '.. 3 15 0 g • Australian Iron and Steel (pf.) 14 4 r Australian Glass 4 9 3 Efi&2W OD Perdriau 1 0 0 |K*lMinians 0 12 0 IKg«Beral Industries .. ' 0 18 0 (EilniU Dock 0 12 0 B'S* Orders IftjBwards Dunlop gij,'W. Adams 0 14 8 2 5 6 0 14 0 HtC'iidard Cement 0 18 9 ■Jfenlworths KWlcd Provisions 10 3 0 7 3 m;S**d»brough. Mort Carson .. 16 9 15 6 tm-Bf ax v Jones 2 7 3 jj§S«*trolytic Zinc LK^K^Kifl ;|SS OUnt Morgan 0 10 4 Mgount Lyell 17 0 EE? rlh Broken Hill IffMng Tin 0 7 6 lliO*Ger Development .. 3 18 0 ■gaperor Gold 0 11 8 WF* " " 12 9

LONDON. September 28 L Sept. 27. Sept. 28. CopperStandard, spot £ s. 42 18 a. 14 £ s. d. 43 4 4J Forward - 42 18 9 43 1 3 Electrolytic .. 47 15 0 48 5 0 to •• 48 15 0 49 5 0 Wire bars . • 48 15 0 49 5 0 LeadSpot Forward 15 8 15 9 0 4i 15 10 7£ 15 10 7J Shelter — Spot Forward 14 15 14 17 74. 6 14 7 6 14 10 7| TinSpot 195 5 0 195 17 6 Forward 196 0 0 196 12 6 •" •*' vol"— Fine, per 02 :. 194d 183d 'Standard per 02 :. 20Jd 20id

Variation. £ £ (1) General reserve 1,500.000 1,500.000 12) Bank notes 13,734,610 + 1C8.9C0 (3) Demand liabilities- — la) State 3,913.593 + 209,343 (b) Banks 5,386,144 —556.885 (c) Other 331,499 4- 53,597 (5) Liabilities in currency other than New Zealand 17,898 + 635 (6) Other liabilities 138,734 + 13,839 Total 25,072.487 —110.511 Assets (7) Reserve— (a) Gold 2.801,791 2,801,791 (b) Sterling ex- ' change 11,449,447 —797,559 (8) Subsidiary coin (10) Advances — 225,944 —2,071 (1) Primary Products Marketins Department 3.158,607 —122,595 (2) For other purposes 4.500.000 + 700,000 (11) Investments 2.732,065 2,732.065 13) Other assets 204,633 + I1J.714 Total 25,072,487 —110,511

(Bliri'lSH 0FFIC1A1 W1UEL.E5S .} RUGBY September 28. Par. Sept. 27. Sept. 28 Paris, I'r. to £1 170 1735 178 9-16 New York. dol. to £1 4.866 4.79 4.71 Montreal, dol. to £1 4.866 4.79J 4.81^ Brussels, , belgas to £1 35 — 27.801} Geneva. fr. to £1 25.2215 —- 21.16 Amsterdam, fl. to £1 12.107 8.81} 8.77} Milan, lire to £1 92.43 90 89 Berlin, reichmarken to £1 20.43 12.00 11.901 Copenhagen, kr. to £1 18.159 22.40 22.40 Stockholm, • kr. to £1 18.159 -— 19.39} Oslo, kr. to £1 18.159 19.90 19.90 Vienna, schgs. to £1 34.585 — — Prague, kr. * to £1 154.25 137 137 Helsingfors, marks to £1 193.23 2263 226j| Madrid, pesetas to £1 25.2215 — —- Lisbon, escudos to £1 110 110 3-16 110 3-16 Athens, drach to £1 375 547} 547} Bucharest, lei to £1 818.60 660 660 Belgrade, dinars 376.3 214 214 Rio de Janeiro, pence to milreis 4.90 2 31-32 2 31-32 Buenos Aires. pence to dol. 51 18.802 18.80} Montevideo, pence to peso * 20 20 •Bombay, pence to rupee * 17 59-64 17 59-64 Shanghai, pence to rupee + 83 83 Hong Kong, 15 pence to yen * r / 15 Yokohama, . pence to yen 24.58 14 14 Batavia, guilders 12.107 8.90} 8.58} Warsaw, par zlotys to £1 43.38 26.31 26.31 •Determined by price of silver.

N.Z. on London— £N.Z. to £100 stg. T.T. O.D. 124 124/10/123/11/3 124/9/6 Australia— £A. to £100 N.Z. T.T. O.D. 100/17/6 100/5/100/17/6 100/5/Fiji— £F. to £100 N.Z. T.T. O.D. 90/7/6 90/7/6 89 89 *■ New York— Dol. to £1 N.Z. T.T. O.D. 3.8250 3.8337 3.7562 3.7572 Montreal — Dol. to £1 N.Z. T.T. Q.D. 3.9070 3.9157 3.8345 3.8355 Belgium— Belgasto£lN.Z. T.T. O.D. 22.610 22.685 22.260 22.265 Czechoslovakia — Korunas to £1 N.Z. O.D. — 108.71 108.73 Denmark — Kroner to £1 N.Z. T.T. O.D. 18.228 18.288 17.868 17.870 Finland— _ Marks to £1 N.Z. T.T. O.D. 185.70 186.10 179.30 179.40 France— Francs to £1 N.Z. T.T. O.D. 145.56 142.06 142.08 Germany— Reichmarks to £1 N.Z. T.T. O.D. Nominal Nominal Greece— Drachmae to £1 N.Z. T.T. O.D. _ . 429.55 429.70 HollandFlorins to £1 N.Z. T.T. O.D. 7.136 7.176 6.996 G.998 Lire to £1 N.Z. T.T O.D. - 71.230 71.255 Java— Florins to £ 1 N.Z. T.T. O.D. 7.092 7.132 6.922 6.924 •NorwayKroner to £1 N.Z. T.T O.D. 16.192 16.252 15.882 15.885 Noumea — v Francs to £1 N.Z. T.T. O.D. 149.66 139.01 139.05 Papeete— Francs to £1 N.Z. T.T. O.D. 148.96 139.26 139.30 Sweden — Kroner to £1 N.Z. T.T O.D. 15.808 15.868 15.463 15.466 Switzerland — Francs to £1N.Z, T.T. .O.D. 17.041 17.146 16.701 16.703 Chefoo — N Z. pence to dol. T.T. O.D. — 122 123 Hong Kong— N.Z. pence to dol. T.T. O.D. 18 21-64 18 19-64 18 61-64 18 61-64 India and Ceylon— N.Z. pence to rup. T.T. O.D. 22 1-16 22 1-32 22J 22} Japan— N.Z. pence to yen T.T. O.D. - 173 17S Manila— N.Z. pence to peso T.T. O.D. 30 45-64 30 39-64 31 45-64 31 45-64 Shanghai— N.Z pence lo dol. T.T. O.D. - 115 IIS Singapore— N.Z. pence to dol. T.T. O.D. 34 17-64 34 11-64 35 35