Commerce, Mining, Finance

Evening Star, Issue 23378, 22 September 1939, Page 12

Commerce, Mining, Finance

Britain Preparing War Budget

Rise In N.Z. Reserve Bank’s Advances

More buyers For Select Australian Scrip

British markets reflect the quiet confidence of the Prime Minis-

Australian issues tended to.firm on the Dunedin market this morning, but caution held buyer*’ limit* at modest levels. Buyers reappeared for select metal*,.while two or three industrials were accorded firmer support. Other section* were quiet. Great Britain’s War Budget will be Introduced next Wednesday. Advances “for other purposes” made by the Reserve Bank last week showed a rise of £750*000 to the big figure of £15,000,000. London fund* were £382,000 lower, while the ratio eased..

RESERVE BANK RETURN STERLING EXCHANGE DOWN £381,985 ANOTHER INCREASE IN NOIE ISSUE ADVANCES “ FOR OTHER PURPOSES " STILL RWlHfi The weekly statement of’ assets and liabilities of the Reserve Bank of New Zealand as at-the close of business bn September 18 is balanced at £52,639,699; .against the previous week’s balance 0f,.'£38i593,449. FEATURES IN, RETURN. Sterling exchange ";is down by £381,NS at £5,299,372. ■ Reserve ratio hgs eased, from 27.658 per cent, to 28.365 per cent. Advances to - the Marketing Department have again been reduced by £336,771, while advances “for; other purposes” have risen by -£750,000 to,.the level of £15,000,000. 9 State deposits are- higher by £306,865. Note Issue has again risen, this week’s figure being £18,"422,533, an increase of £317,308. 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 . _ ' __ Fund ... •••■ 1,500,000 1,500,000 2. Bank-notes ... ■ 16,105,225 , 16,422,533 3. Deinand liabilities— - ■ • (a) State . ... 1,221;486 . 1,528,351. (b> Banka ... 12,927,596 12,249,234 (c) Other ... 360.952 419,951 4. Time ■ deposits 6. Liabilities in currencies other than New Zealand currencies 15,492 28,312 B. Other liabilities 462,697 491,319 : Total ... ..,£32,593,449 £32,639,699 ASSETS. 7. Reserve—(a) Gold ... ... 2,801,839 2,801,839 (b) Sterling ex- ' .change ... 5,681,357 5,299,372 (c) Gold exchange ' 8. Subsidiary coin 248,749 245,291 9. Discounts—(a) Commercial and agricultural bills . - ~ ~ (b) Treasury and local body bills ~ 10. Advances—(a) To. State or State' undertakings— ' (1) Primary "Products Marketing Depart- . ment ... ... 5,106,654 , 4,769,883 ,{2) For other purposes' ... 14,850,000 15,600,000 (b) To pother public authorities ... ... —* 11. Investments ... 3,820,872 3,820,872 12. Bank buildings 13. Other assets ... 83,976 102,442 Total £32,593,449 £32;639,699 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities 27.658 p.c. 26.365, p.c. Sterling exchange is expressed in New Zealand currency. RANGE OF MOVEMENTS. The ' movement, of the sterling exchange held by 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

FRUIT AND PRODUCE BUSINESS BRIGHTENS . Reilly’s report that better business has been experienced during the week, with a satisfactory inquiry for most lines of fruit and produce. Good-qual-ity, dessert apples are wanted, and prices are high for any. good lines of Delicious and other coloured varieties. Cooking apples have also firmed in value. Dessert pears are realising satisfactory values, and some nice quality lines are coming to hand ex cool store. . Supplies of cut flowers arriving from the north and local growers, show a considerable- increase, and values are lower. A ; shipment of oranges, consisting principally of Valencias, met an esccp tionally keen demand, while a small consignment; of, Australian grapefruit also sold readily, A small parcel of pineapples of excellent quality were received, the fruit realising satisfactory values. All lines of fresh vegetables are meeting with a satisfactory demand. Increased supplies of spring cabbages aro being received. Good-quality hothouse lettuces are netting good values. Rhubarb is coming to hand in larger consignments from Outram. Carrots and parsnips are in ample supply, and values are lower. Suede turnips _ have a better inquiry. Heavier supplies of table potatoes are available, but there is only a limited inquiry for these, and values are lower. It is evident that sufficient stocks of old _ potatoes _ are available : for some considerable time. Seed potatoes have an excellent inquiry, most varieties now being sold out. With the better weather conditions increased consignments of whitebait are coming to band, and the market remains satisfactory. Eggs. —An excellent demand has been experienced for preserving purposes, there being no change in values, guaranteed selling at Is sd. Poultir. —Limited supplies are coming to_ hand, with firm values being maintained.

FARMERS' AUCTIONEERING [T?ee United Pkess Association.) AUCKLAND, September 21. • The annual account of the Farmers’ Auctioneering Company at Hamilton show that the net profits for‘the year ended July 31 to be £51,602, compared with £60,632 for the previous year. The preference shareholders have received tlie usual 6 per cent, dividend subject to a 20 per cent, reduction. The directors' now recommend the payment of 6 per cent, on ordinary shares, which is an unchanged rate. The turnover dropped to-£1,392,719 from £2,221,110, and the gross profit to £166,131 from £174,405 against assets totalling £592,477. Outside liabilities are £29,264, a percentage of less than 5 per cent. The company deals as farmers’ financiers in the Waikato, Bay of Plenty, and contiguous district. BUTTER AND CHEESE IMPERIAL GOVERNMENT PURCHASE Prices at which the Imperial Government through the New Zealand Government may purchase the exportable surplus of New Zealand butter and cheese have not yet been published. But Australian dairy interests have been apprised of the prices offered by the Imperial Government for butter and cheese for the period ended June 30, 1940. The prices offered are considered to be particularly satisfactory lender prevailing conditions, and acceptsuce of the offer was recommended by the interests concerned. On behalf of the industry the Australian Dairy Board decided to accept the offer subject to adjustment of certain minor conditions of sale, which, it is anticipated, will be readily adjusted. When the contract has been completed, a .full statement as to prices and conditions . will be made. The offer from.the British Government relates to white and unwaxed At the request of the Commonwealth Government the board nominated a committee of management which will set up State committees to carry out the provisions of the contract. Provision has been made to retain the equalisation system which has operated for some years in Australia. The board has undertaken to assist the Government by giving the fullest possible cooperation, in all steps deemed necessary to maintain production in Australia and to ensure supplies to the United Kingdom,

THE IMPORT REGULATIONS NATIONAL CONFERENCE DESIRED ("Per United Press Association.] AUCKLAND. September 21. _ The desirability of convening a national conference of those affected by the import regulations was urged by the Auckland Bureau of Importers in a letter received at a meeting of the council of the Auckland Chamber of Commerce. As the sweeping nature of the regulations was being .felt in a wider circle, the executive felt that such a conference should be called to enable representatives to meet the Minister of Finance (Mr Nash). The letter stated that all branches of, commercial life and private citizens were feeling the adverse effects of the control of .imports and sterling funds. The bureau felt that unless some attempt was made to impress upon the Government the need for altering its policy there would be no prospect of even early relief from the damaging effect of the regulations bn New Zealand generally. The president of the council (Mr A. Ely) reported that responsible bodies had been asked to send representatives to a meeting on Monday to discuss what steps should be taken in the matter of a national conference. ofr tjp

-7- AA »% ■% »% »% ,T. -V »*« A A »*-> A -1- A THE WOOL LEVY The levy on wool for the coming season was fixed in last night’s ‘ Gazette ’ (says a Press Association telegram) at 6d a bale, 3d a fadge, and Id a bag or sack. The levy is payable on wool produced. in New Zealand, which, during the season starting on October 1, is exported from New Zealand or delivered to a wool manufacturer for use in New Zealand.

table:—Sterling Reserve exchange ratio 1937. , Dec.'27 ... ••• £ (N.Z.) per cent. 16,992,748 70.325 1938 ■ Aug. 29 ... ... 13,695,000 67.2 Sept. 26 .» .... 11,449,447 60.786 Ort. 31 , 7,707.697 46.09 Not. 28 ... ... 4,828,302 . 32.685 * Including Treasury bit s. 27.882 Deo. 26 4,678,233 1939. 28.13 Jan. 2 4,017,232 ■ Jan. 9 ... ... 3,933,851 25.526 Jan. IS 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 4,525,030 25.578 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 May 1 ... ... May 8 4,639,061 25.11 4,817,992 28.815 4,708,705 25.722 May 15' 4,695.194 25.499' May 22 ... ... 4,758.544 85.611 May 29 4,564,205 25.136 June 5 5,882,307 29.655 June' 1 12 ... ... 5,773,667 29.591 June 19 ... .... 5,793,195 30.985 Juno 26 ... ..» 5,600.691 30.249 . July 3 ... ». 5,690,003 31.329 July 10 6,556,796 30.805 July 17 5,589,074 30.579 J uly 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 Sept. 18 ... ... 5,299,372 26,365 . The statutory minimum • of the reserve W£o4a 25 per cen^. -