Commerce, Mining, Finance

Evening Star, Issue 23372, 15 September 1939, Page 6

Commerce, Mining, Finance

London Funds Larger Sterling Drops to Low Rate Australian Metals Reflect Buyers' Caution There was little marked change in investment levels on the Dunedin market this morning. Australian metals closed uncertain, with no buyers forward, but other sections were steady if inactive. Sterling fell to 3.76 yesterday, the lowest rate since the depression era. Gold is held at £8 Bs. London funds held by the Reserve Bank last week showed an advance of £409,547 to £5,681,357. The note issue climbed to above the £16,000,000 mark, while the ratio was higher.

RESERVE RANK RETURN RECOVERY IH STERLING EXCHANGE SLIGHT FALL IN ADVANCES—RATIO HIGHER NOTE ISSUE NOW AT HIGH LEVEL The weekly statement of assets and liabilities of the Reserve Bank of New Zealand, as at the close of business on September 11, is balanced at £32,593,449, against the previous week’s balance of £32,434,166. FEATURES IN RETURN. Sterling exchange is £409,547 higher. Reserve ratio has recovered from 26.458 per cent, to 27.658 per cent. Advances to the Marketing Department have again been i reduced, this week’s figure being down by £222,468. Advances “ for other purposes,” which thowed a rise of £1,000,006 last week, are unchanged. State deposits are £507,519 lower. Note issue shows another advance, the figure now appearing at £16,105,225. The figures at the close of the preceding week are given with this week’s return for purposes of comparison, shillings and pence being omitted. LIABILITIES. Last week. This week. £ £ 1. General Reserve _ , frmii 1,500,000 1,500,000 2. Bank notes ... 15,944,179 16,105,225 3. Demand liabilities—(a) State ... 1,729,005 1,221,486 ■ (b) Banks ... 12.473.448 12.927.596 (c) Other ... 305,405 360,952 4. Time deposits 5. Liabilities in currencies other than New Zealand currencies 17,285 15,492 6. Other liabilities 464,842 • 462,697 Total ... ...£32,434,166 £32,593,449 ASSETS. 7 ‘ 2,801.839 2,301,839 5,871,810 5,681,357 8. Subsides 86 254,660. 248,749 9. Discounts — (a) Commercial and agricultural bills (b) Treasury and local body bills —' 10. Advances—(a) To State or State undertakings— (l) Primary Products Marketing Department 5,329,122 5,106,654 (2) For other purposes. ... 14,850,000 14,850,000 (b) To other public authorities 11. Investments ... 3,820,872 3,820,872 12. Bank buildings 13. Other assets ... 105,862 . 83,976 Total £32,434,166 £32,593,449 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities 26.456 p.c. 27.658 p.c. Sterling exchange is expressed in New Zealand currency. RANGE OF MOVEMENTS. The movement of the sterling exchange held bv the Reserve Bank of New Zealand since December, 1937, and of the ratio percentage of reserve to notes and other demand liabilities are shown in the following table: — Sterling Reserve exchange ratio £ (N.Z.) percent.

OIL FROM SWAMPS USE OF KAURI PEAT SUGGESTION TO THE GOVERNMENT SUCCESS OF PROCESS CLAIMED The possibility of extracting crude oil in commercial quantities from the kauri peat swamps of the Far North has been advanced ns a suggestion to the New Zealand Government. It is claimed that plant developed by a specialist, Air S. 11. Trevor, has resulted in from 32 to 35 gallons of crude oil being obtained from each ton of air-dried peat. Mr Trevor first developed a process about 10 years ago, and after visiting Britain to arrange for plant and equipment to undertake the work he returned to the Dominion about three years ago. Obtaining peat from the swamp near Waipapakauri, he set up the plant at Wellington and obtained a quantity of crude oil to the amount of between 32 and 35 gallons to ton. However, the Government at that time was not particularly interested in the idea. ATTENDED WITH SUCCESS. Arrangements were made to send 100 sacks of peat last December to Alelbourne, where Mr Trevor set up his plant and where arrangements were made for the formation of a company. The work is continuing in Melbourne with success, and following the outbreak of war it was suggested to the New Zealand Government that they should recall Air Trevor and attempt to develop the industry. The Alinister of y y »{• 9 »ji y

The statutory minimum of ‘ the reserve ratio is 25 per cent.

Internal Affairs (the Hon. W. E. Parry) has advised that he has placed the suggestions on record to be dealt with as the questions arise. It was estimated that it would cost only IJd or IJd to extract a gallon of crude oil. Samples of the product had been sent to the Imperial authorities, and it had been stated that the oil had been refined into 12 different varieties of oils and fuels. There were vast areas of kauri peat swamp available.

N.Z.’S DAIRY PRODUCE

SALE TO BRITAIN [Per United Press Association.] WELLINGTON, September 14. It was desirable that the dairy industry should know that representations had been made to the Government and what action was likely to be taken so that the present uncertainty could be overcome, said the chairman of the Dairy Board (Mr W. K. Hale) to-day. Mr Hale said that a , meeting of the Dairy Industry Council had been held in Wellington last week. The council had met the Minister of Marketing (Mr Nash), and on behalf of the industry had assured him of full co-operation with the Government in all measures designed to assist the Mother Country during the war. It further suggested that all questions previously in dispute between the Minister and the industry should be held in abeyance until after tiie conclusion of hostilities. The council also outlined its views as to what the arrangements regarding the price to be paid to farmers this season should be, and what it considered would be the best method of dealing with the dairy industry under the present changed conditions so that the industry would render the greatest assistance in increasing food production.

Mr Hale qdded that Mr Nash had said that the whole of New Zealand's dairy produce would be sold to the Imperial Government, with which the New Zealand Government was now in touch. “It may take some time to complete those negotiations.” Mr Hale said. “ but as soon as they are completed the Minister will make a full announcement.”-

WOOL OWNERSHIP REGULATIONS TO BAR TRANSFER MEASURE TD PREVENT SPECULATION [From Our Parliamentary Reporter.) WELLINGTON, September 14. The wool emergency regulations issued to-night make it illegal to change or vary the ownership of wool. The regulations are to remain in force until October 14. “ The purpose of the regulations relative to the transfer of the ownership of wool is to prevent speculation or change of ownership while negotiations are in progress with the United Kingdom Government in connection with the purchase of wool during the period of the war,” said the Minister of Marketing (Mr Nash) when explaining the regulations. Wool is defined to include greasy wool, slipe wool, scoured wool, sheepskins, and wool growing on any sheep or lamb, but it does not include wool that is at present in process of manufacture or treatment in a woollen mill. Breaches of the regulations are punishable by a fine not exceeding £2OO or imprisonment up to 12 months in the case of an individual, or a fine not exceeding £1„000 in the case of a company or corporation.. BRITAIN'S APPLE IMPORTS The Imperial Economic Committee reports that New Zealand sent' 407,000 cwt of apples to the United Kingdom, which was the greatest quantity she has ever exported ,to the Home market, with the exception of 1934, when the total was 461,OOOcwb.'* It represented 5.7 per cent, of the total apple imports. The chief exporter of apples to the United Kingdom was Canada, which supplied 42.6 per cent, of the total imports. Next came the United States (22.1 per cent.) and then Australia (21,2 per cent.). France supplied more than New Zealand (7.3 per cent.). By far the greatest proportion of New Zealand apples are shipped to London. In 1938 the figure was 233.000 cwt. Liverpool received the next biggest consignment, 97,000 cwt. The first shipments began in March and worked up to a peak in June, when arrivals in Britain totalled 146,f)000wt. They fell to 109,OOOcwt in July, when the last shipment was delivered for the year. The peak of Australian supplies was during May and June, when 622,000 cwt and 479,000 cwt respectively wore delivered.

COMPANY NEWS N.Z. FARMERS' CO-OP. > _____ SLIGHT RISE IN NET PROFIT DIVIDENDS UNCHANGED-TAXATION UP Net profit of £54,760, compared with £53,640 in the previous year, was earned by the New Zealand banners Co-operative Association of Canterbury Ltd. in the year ended July 31, 1939. 1 The dividend" recommendations are unaltered at 4J per cent, on the first preference shares and 4 per cent, on the A and B preference shares. Provision for taxation is higher at £23,286 (including £2,611 for social security charge), against £17,250 a year ago. The sum reserved to reduce the deficiency in the profit and loss account is thus lower at £13,284, compared with £18,200 a year ago; Balance sheet items show that the secured deposit stock account is again lower, having been reduced by £240,000 in two years. The general reserve has moved up by £I,OOO during the year. A reduction of nearly £IOO,OOO from £199.250 to £103.561 was made in the reserves against bad debts, suggesting that a number of old accounts have been cleaned up and the losses written off wherever possible. The company’s liquid investments and deposits have risen considerably. A year ago they totalled £84,827, but have now been almost doubled, and stand at £166,976. MINES AND METALS REPORTS AND RETURNS Mossy Creek. The Mossy Creek return totalled 16oz lOdwt for 132 hours’ work and 6,149 yards treated. Big River. The Big River Gold Mines Ltd. rer port for the week ended September 7 is as follows-No. 5 level: North stope —South end 3ft 6in, north end 2ft 6in, total length 40ft. Holed to No. 4 north winze. North level; Advanced 7ft. total 57ft. A leader 9in wide top of face has not yet extended to floor. No. 6 level: Commenced rise to connect No. 5 south winze. Winze: The face at the bottom of the winze is sft wide. There are three leaders Ift and 6in and Sin wide, with intervening spaces of mullock. Gold is visible in the stone. Twenty-eight tons of stone were sent to the battery. METALS MARKET CLOSED LONDON, September 13. The metals market will be closed until September 18. BUTTER PRICES LONDON, September 13. The maximum butter prices are: Danish 148 s, retail Is 7d; Empire 1295, retail Is sd.

1937. Dec. 27 ... 16,992,748 70.323 1938 Aug. 29 ... 13,695,000 67.2 Sept. 26 ... 11,449,447 60.785 Oct. 31 7,707,697 46.09 Nov. 28 ... 4,828,302 32.685 Dec. 26 ... 4,678,233 27.882 1939. Jan. 2 4,017.232 26.13 Jan. 9 3,933,851 25.526 Jan. 16 4,373,105 26.782 Jan. 23 4,395,525 26.695 Jan. 30 4,133,586 25.75 Feb. 6 ... 4,074,954 25.047 Feb. 13 ... 4,164,499 25.073 Feb. 20 ... 4,523,030 25.378 Feb. 27 ... 4,839,555 25.799 March 6 4,705,897 25.017 March 13 4,591,685 25.026 March 20 4,547,863 25.129 March 27 4,659,874 25.419 April 3 ... 4,663,309 25.924 April 10 ... 4,598,651 25.501 April 17 ... 4,872,817 29.305 April 24 ... 4,639,061 25.11 May 1 4,817,992 28.815 May 8 4,708,705 25.722 May 15 4,695,194 25.499 May 22 ... 4,758,544 F5.611 May 29 4,664,205 25.136 June 5 ... 5,882,307 29.655 June 12 ... 5,773,667 29.591 June 19 ... 5,793,195 30.985 June 26 ... 5,600,691 30.249 July 3 5,690,003 31.329 July 10 ... 5.556,796 30.805 July 17 ... 5.589,074 30,379 July 24 ... 5.596,010 28.852 July 31 ... 5,576,957 28.132 Aug. 7 ... 5,150,954 26.795 Aug. 14 ... 5.431.119 28.026 Aug. 28 ... 5,690,208 28.112 Sept. 4 ... 5,271,810 26.456 Sept. 11 ... 5,681,357 27.658