Commerce, Mining, Finance

Evening Star, Issue 23369, 12 September 1939, Page 9

Commerce, Mining, Finance

Australian Metals Still Rising

Other Sections Show Little Change

r Australian mining shares rose further on the Dunedin investment market this morning, once again practically monopolising interest. Buying support expanded and values touched the best levels for over two years. Transtasman industrials were mostly quiet, but Broken Hill Proprietaries moved up sharply. Dominion scrip was generally stable.

President Roosevelt, acting under the emergency regulations, has suspended operations in the American sugar markets.

JIN INVESTOR’S NOTEBOOK EX. DIVIDEND QUOTATIONS ADOPTION OF NEW RULING In accordance with the association’s recent decision New Zealand Stock Exchanges ate now quoting scrip exdividend as from the day after the closing of transfer books, notwithstanding that the distribution is not payable until some time after the date of closing. Transactions in all shares are therefore cum dividend only until the books have closed. The adoption throughout the Dominion of this ruling should do much to remove the general uncertainty and misapprehension that has at times existed as to the cum and ex dividend dates, while _ it also brings New Zealand into line with the transtasman practice. To enable investors to keep abreast of the market in this • respect, the ‘ Star ’ will incorporate, as from today, a table of dates of the closing of books in the “ Dividends and Call List ” published on this page. REICH ECONOMY, While Germany is ’in an unenviable economic plight, the seriousness of which cannot be minimised, a financial collapse is not to be expected shortly, as many are predicting. _ The article prepared by the Federation of British Industries, which appears in the next column, admirably sums up the position of Reich industry and commerce, but informed quarters have been saying similar things of Germany for the past two or three years. Main factor in the argument, however, is to be found in the predictions made of the economic collapse of both Italy and Japan. Financial pressure on both countries occasioned by their military campaigns certainly drastically affected their Budgets, and national economies, but, provided the will to bear the burden remains, a country can confound most pessimistic predictions. AN AMERICAN COMMENT. Reviewing the international situation, in its relation to financial markets, an American commentator wrote the following a few weeks ago:— The desire of investors and traders to be on the sidelines in the event of

the outbreak of a war in Europe is not based upon any ■widespread belief that i business in the United States would be adversely affected. In fact, there are many reasons for expecting; a flood of orders from the belligerents practically from the outbreak of hostilities, rather than a year later as happened during the World War. It was some time after the war began in 1914 that normal shipping routes to Europe were disrupted and Great Britain and France began to concentrate their purchases in the United States. At the present time,, however, an intensive submarine and aerial blockade of those countries, which, will certainly be attempted in the event of war. would almost certainly cause the western countries to concentrate their imports over the North Atlantic route. “ Nevertheless, it is generally expected that the outbreak of war would be accompanied by a period of acute unsettlement of the financial markets, aggravated by the fact that foreign investors have accumulated large amounts of American securities during the past four years. A considerable part of these holdings, it is anticipated, would be -liquidated by their owners, or, if nationalised by the belligerent Governments that take them over. _ Be- ■ cause of this and other factors, it is presumed that the stock exchanges would be subjected to rigid restrictions, for a short period at least.”

MINES AND METALS REPORTS AND RETURNS Electrolytic Zinc. The production statement of the Electrolytic Zinc Company of Australasia Ltd. for the four weeks ended August 23 is as follows, the figures for the previous four weeks being given in parentheses:— Zins, 5,664 tons (5,392 tons) ; amount used at works, 90 tons (90 tons); lead, 235 tons (250 tons); silver, 30.6500 z (39,0OOoz). West Coast Department. Ore treated, 13,118 tons (12,832 tons); lead concentrates produced, 1,094 tons (959 tons) ; zinc concentrates produced, 4,242 tons (4,375 tons). Mataki. The Mataki return for the week ended September 8 was 28oz for 134 hours’ work from 11,800 yards. CLUTHA AND MOLYNEUX SHARES Press Association—By Telegraph—Copyright LONDON, September 11. (Received September 12, at 11 a.m.) Share quotations; Clutha River Com-pany-buyers 9d, sellers Is; Molyneux River Company—buyers 10id, sellers Is IJd.

BERMAN ECONOMY A SECOND-QUARTER ANALYSIS ATTEMPTING TO ESCAPE THE DILEMMA OF INFLATION ANNEXATIONS HAVE HOT IMPROVED THE POSITION An analysis of the German financial position in the Federation of British Industries * Business Barometer ’ for the second quarter of 1939 shows that the staying power of the German economic system is about to he put “ to the severest test it has ever had to endure.” That was written prior to the declaration of war, and much that is contained in the article is of especial interest to-day. The history of Germany’s economic policy in the past year, states the analysis,” may be summed up as an endeavour to escape from the dilemma, of inflation on the one hand and a cutting down of the armament programme on the other, together with the threat to which these alternatives laid open her economic stability at home and her political programme in Europe. The annexation and subjugation of Austria and Czecho-Slovakia have in many respects made the situation worse , instead! of better. The large additions to the military budget necessitated by the conquest of these territories have been greater than could be defrayed out of the money seized. The effect on German’s trade account has been to convert an export surplus of over Rm 400 millions (about £33,000.000) in 1937 into an export deficiency of Rm. 400 millions in 1938. And there is little prospect of an early improvement.

Generally speaking, what Germany requires is not more population and additional manufacturing capacity, but more cheap food andl raw materials. Accordingly, the recent additions to her territory are—apart from captured raw materials, supplies, and foreign ex-change-^—unlikely to be of much immediate assistance; in fact, they are more likely to increase the strain on her foreign exchange resources. If the industries of Austria and Czccho-Slovakia are to continue to function they must he provided with considerable quantities of raw materials that Germany is_ not in a position to supply, and) situation has been made much more difficult hy the circumstance _ that the exports which these countries previously sold for the purpose of buying raw materials are, from now onwards, to be subject to the new 25 per cent, duty levied on German goods by the United States, a countrv m which, until recently, they found a ready market. DIVIDENDS AND CALL LIST, DIVIDENDS DUE. Huddart, Parker—lnterim pref. 3 per cent., ord. 7 per cent. 5 ) Sept. 14 Woolworths (W.A.) Ltd.—lnterim half-yearly, 7 h per cent Sept. 15 Electrolytic Zinc—Half-yearly ord. and pref. at 9 per cent, per annum (July 26) Sept. 15 Broken Hill South—€d a share (August 8) Sept. 15 Foster Brewing Co. Ltd. —Interim half-yearly, 6£ per cent Sept. 16 Milburn Lime and Cement—Final, Is a share (August 25) Sept. 19 N.Z. Drug—lnterim, 3J, per cent. Sept. 20 Howard Smith—lnterim half-year, 2 per cent. (September 11) ... Sept. 21 Apex Investment Trust—Pinal, 4£ per cent, per annum Sept. .21 Auckland Farmers’ Freezing Co. — 6 per cent, per annum Sept. 23 North Broken Hill—Quarterly, 6d a share (August 29) ... Sept. 27 George Farmer, Sydney—Ord., per cent, per annum Sept. 29 Felt and Textiles —5 per cent., making 10 per cent, per annum Sept. 30 British Tobacco Co. Ltd.—Quarterly ord., 2 per cent. (September 9) Sept. 30 Dunlop Perdriau Rubber—Finals cum pref., 5 per cent., making 10 per cent., and ord. 3i per cent., making 7 per cent, per - annum respectively (September 14) ' Sept. 30 Barnet Glass Rubber—Finals cum pref., 6 per cent., and ord., 8i per cent., making 10 per. cent, and 12 per cent, per • annum respectively Sept. 30 N.Z. Newspapers Ltd. —Interim, 8d a share Oct. 2 Wairarapa Farmers’ Co-op.— Pref. 3£ per cent, per annum Oct. 2 Hume Pipe (Australia) Ltd. — Pinal ord. and pref., 3J per cent, per annum, making 71 per cent Oct 2 Nestles and Anglo-Swiss Condensed Milk (Australasia) Ltd.—Quarterly pref. at 8 per cent, per annum Oe.t. 2 Bank of Australasia—lnterim _3s 6d per share (less British income tax, September 11) ... Oct. 6 Woolworths (N.Z.) Ltd.—Halfyearly pref., 9 per cent. (September 24) Oct. 15 Woolworths Ltd., Sydney—Halfyearly ord., 6 per cent. (September 24) Oct. 15 (Dates in parentheses signify the closing of transfer hooks and registers.) CALLS PAYABLE. Tooheys Ltd. —8s a share, making 16s paid , ••• Sept. 21 G. J. Coles—los a share, making 1 £1 paid Jan. 15

METALS UP AGAIN LYELLS SELL AT £l/14/6 ZIHGS AND BROKEN HILLS RISE SHA2PLY EASIER MARKET FOR BANK OF NEW ZEALANDS Metals and a few select Australian industrials showed further advances this morning. Buying support for Commonwealth mining issues expanded again, with strong support on a buoyant market. Business was better. Broken Hill Souths had Is better buyers at £1 11s, with lowest vendors at 2s away. Zinc prefs. sold at £3 Is in the room, while buyers of the ords. closed at' Is below -the £3 mark, the highest valuations for a long time. Mount Lyells changed hands at £1 14s 6d after the call, quotations in the room finishing 6d on either side. Morgans held late rates at 11s, but Norths rose steadily, purchasers offering 2s 6d higher. Among Commonwealth industrials, Broken Hill Proprjetaries captured most interest, the scrip moving forward sharply on a buyers’ market to £3 12s 9d, 2s 9d abovo yesterday’s corresponding offer. G. J. Coles and Sydney Woolworths continued to reflect caution, while A.I.C. (rights) changed hands at 4s. Bank of New Zealands eased further, the market slipping to a sole vendor’s quotation of £1 18s 6d. Insurances were hesitant, but other early sections showed little marked change. Dominion industrials were inactive, the only outstanding item being provided by Dominion Rubbers, which were sought at 17s 6d. SALES REPORTED. —Late Yesterday.— 4 per cent. Stock (1940-43), £99 10s. Mount Lyell, £1 145.. Mount Morgan, lls. —This Morning.— Nokomai, Is 9d. SALES ON ’CHANGE. —This Morning.— A.C.I. (rights), 4s (2). Electrolytic Zinc (pref.), £3 Is. Mount Morgan, lls. SALE AFTER CALL. —This Morning.— Mount Lyell, £1 14s 6d. •irtiririr’tr’tirir’trir’t’irir’iririr’i-i-t