COMMERCE AND FINANCE

Otago Daily Times, Issue 23916, 18 September 1939, Page 4

COMMERCE AND FINANCE

FORWARD EXCHANGE f LICENSED IMPORTS FACILITIES FOR OBTAINING STERLING (Per United Press Association) WELLINGTON, Sept. 16. It is learned from the Associated Bainks that branches of the trading banks throughout New Zealand are now in a position to give full information regarding the practical facilities which they can make available to importers desirous of fixing the sterling rate of exchange in respect to deferred transfers in payment foie licensed imports. The general conditions under which such facilities are available were recently announced by the Reserve Bank as follows: 'The trading banks are authorised to enter into forward sterling exchange arrangements in respect of payments for licensed imports provided, first, that the relative goods have either arrived in New Zealand or have been shipped, secondly, that the importer has in respect of the transaction: (a) paid into an' irrevocable deposit account at a trading bank in New Zealand for eventual remittance by telegraphic transfer or otherwise or to cover payment of the relative draft at or before maturity; (b) established with his banker an irrevocable letter of credit; (c); paid a sight draft; or (d) accepted a usance draft, in which case the bank may stipulate that the arrangement is conditional on the draft being paid in due course. *

LOCAL AND OVERSEAS MARKETS

MERCHANDISE MARKET AUSTRALIAN RAISINS SOLD OUT Advice has been received from the Australian Dried Fruit Board that all packings of lexias and seedless arid seeded raisins have been sold out. At least one Dunedin house has withdrawn its packing of tea in 21b and 51b tins. In other centres in the Dominion supplies of tea are also to be made in packets instead of tins and canisters. The Waimarino arrived on Friday with a cargo of sugar. The Waiana will land another cargo this week. A temporary shortage is being experienced in some packings of English cigarettes. It is expected that this shortage will be relieved within the next few weeks. Indent agents are still without quotations from overseas. Further increases in the landed costs of British and other overseas lines must follow on the new war risk insurance rates. American goods also will be affected very materially consequent on the sharp drop in the pound sterling as against the dollar. On the present outlook it appears that costs must continue to show advances till the cost of living will be much higher than it is even at present. Exports of all chemical lines have been prohibited by the British Government, except under licence. This is expected to cause a reduction in shipments to New Zealand of such lines as caustic soda, bicarbonate of soda, boracic acid and bluestone A factory is under construction, in Australia to manufacture bicarbonate of soda, soda ash and caustic soda, and when this is completed it is reported that requirements for New Zealand will come from that source, Comsacks and Woolpacks Prices for jute goods have been withdrawn by several mills in Calcutta. The main items which will affect New Zealand are woolpacks and cornsacks. The Commonwealth Government has prohibited exports of all sack and jute bags. Huge orders were placed in India some time ago by Britain and France for sandbags, and it appears that most of the Indian mills are too busy with these orders to manufacture cornsacks and woolpacks. SMITH AND SMITH, LTD. DIVIDEND OF 7| PER CENT. The directors of Messrs Smith and Smith, Ltd., state that trading for the year ended June 30 resulted in a gross profit of £118,323. After meeting working expenses and providing for depreciation, £22,376 remains. This with £3620 brought forward from the preceding year. leaves £25.996 to be dealt with. It is proposed that £10,848 be held against land, income and social security taxes; also that £7087 10s be paid as a 7J per cent, dividend on ordinary shares. This dividend will approximate 3.88 per cent, on the paid-up ordinary capital, plus the amount carried forward and reserves (other than for taxes or dividends) A dividend of 5 per cent on ptefererice shares, arnbunting to £2250. has been paid during the year. It is, recommended that a similar sum be. placed aside to cover payment due in the ensuing year; a sum of £SBIO will be carried forward.

EMBARGO REMOVED AUSTRALIAN CANNED FRUITS SUPPLIES FOR DOMINION (Per United Press' Association) AUCKLAND, Sept. 16. Resumption of the supplies of Australian canned fruits to New Zealand has been arranged as a result of the lifting of the ban imposed by the Australian Canned Fruit Control Board last month. The board’s action was taken to mark its disapproval of trade on the system of deferred payment, but it was stated to-day that the chief objections were removed by the financial arrangements now operating under Reserve Bank control. Shipments will be made to New Zealand on the basis which provides for the remittance of 25 per cent, of payment in the first quarter next year and the remaining 75 per cent, in the second quarter. New Zealand purchasers will be required to pay 5 per cent, interest during the period between the arrival of shipments and the transfer of funds to the Commonwealth STERLING AND DOLLAR (British Official Wireless) (United Press Association) (By Electric Telegraph—Copyright) RUGBY. Sept. 16. (Received Sept. 17. at 8.30 p.m.) The rate for sterling on New York has again been fixed this week at 4.04 dollars PUKEMIRO COLLIERIES, LTD. (Special to Daily Times) AUCKLAND, Sept. 17. With reference to the earnings of Pukemiro Collieries, Ltd., for the year ended August 31, it was stated that no provision for depreciation was made. Actually, an allowance of £1757 was provided before the net profit was struck.

MINING NEWS WEST COAST DREDGES The Golden Sands return was 520 z 17dwt for 69 shifts. The Argo return was 460 z for 131 hours. 14,000 yards being treated. WHITE’S ELECTRIC DREDGE The return of gold won by White's Electric Dredge during the week ended September 14 was 260 z from 5000 yards treated in 79 hours NEW RIVER RETURN The New River Gold Dredge reports a return for the week ended September 14 of 90oz from 9500 yards treated in 124 hours’ working time. TREASURY BILLS RUGBY, Sept. 16. (Received Sept. 17, at 8 p.m.) The feature of yesterday’s tender, when £55,000,000 of Treasury bills were offered, was a sharp rise to £89,160,000 in the amount applied for as compared with £60,160,000 a week ago. The total offered was fully allotted in bills at three months, the average rate per cent, being £3 11s 1.12 d. compared with £3 12s 0.98 d last week. FRUIT AND PRODUCE WORLD Reilly’s report selling:— Per Dozen. —Spring cabbage, 3s. Rhubarb, 4s 6d to 5s 6d. Lettuce, 2s to 3s 6d; choice, to 9s. Carrots, Is 6d. Cucumbers, 15s. Eggs: Guaranteed. Is sd; storekeepers’ Is 4d. Mutton birds. 11s 6d. Poppies. Is to 2s 6d. Narcissi; Sol de Or, 5s to 8s; cremes. 5s to 6s; trumpet, 4s to Bs. Violets, Is 3d to 2s. Freesias. 4s to 6s. Anemones. 9s Local trumpets, 8s to 12s. Each. —Champion egg crate: 24 dozen 18s. Per Case. —Australian grapefruit, 20s 6d to 25s 6d. New Zealand lemons: Fancy, 10s 6d to 16s; good, 8s 6d to 14s. Australian navel oranges, to arrive, 18s to 235. Marmalade oranges, 14s Bananas: Ripes. 22s 6d. Apples: Jonathans. 10s to 12s 6d; Cleopatras. 7s to 9; Delicious, 12s to 14s; Granny Smith, 10s 6d to 12s; Tamas. 9s to 10$ 6d; Sturmer, 12s to 14s; Rome Beauty. 6s to 8s 6d; Statesman. 6s to 8s 6d; small grades. 3s 6d to 5s 6d: cooking apples. 5s to 7s 6d. Queensland pineapples. 255. Pears; Winter Coles, 10s 6d to 13s 6d; Winter Nelis. 10s to 12s 6d. Per Pound. —Brussels sprouts. 2d to 3d. Pumpkins. 3d; Kumeras, sd. Artichokes to 3Jd. Tea: Orange Pekoe 2s lOd. - Butter: Storekeepers’ Is 2d Bacon: Prime, Is 3d. Pigs: Baconers. 8d; porkers. BJd; overweights. 5d Clover honey, 73d to BJd. Beeswax Is 4d. Walnuts, Bd. Whitebait, 4s 6d. Per Sack.—Cabbages. 3s to 4s. Cauliflowers. 4s to 6s. Per Hundredweight.—Onions: Canterbury. 255. Potatoes: King Edwards. 19s to 20s; Arran Chief. 16s to 17s. Olive oil, 18s. Lime suplhur. 3s 9d gallon. Restar: |-gallons, 4s 6d Semesan: lib. 12s 6d. Red Rose nicotine sulphate; 101 b, 435: 21b, 13s 6d; 11b. 7s 6d; ilh. 4s 6d. D.P. Derris for white butterfly control: 11b tins 2s 3d; 101 b tins, 15s. Woodwool, 28s Fruit wrapping paper 2s 9d ream. Fowl wheat, to 6s 9d: second grade. 6s. Maize. 7s 6d Oats: Cartons, to 2s 9d per bushel; crushed oats. 12s 6d X Kevs meatmeal 15s bag Bran. £5 10s Pollard £6 15s Chaff: 8.0.5. £5 10s. Oaten straw. £3 Palmer’s chick food: 1001 b. 21s 6d Per Pair. —Poultry: 153 hens at 7s 4d to 9s. 48 cockerels at 5s to Bs. 17 ducks at 4s 2d to 10s 6d. and 18 pullets at 9s to 14s 6d per pair REILLY’S CENTRAL PRODUCE MART, LTD., Moray place. Dunedin. C.l,

COMPANY BALANCE SHEETS THE CANTERBURY FARMERS’ COOPERATIVE ASSOCIATION. LTD.

A net profit of £18,275 succeeds one of £19,361 for 1937-8. In each case it is assumed that the figure is subject to income tax, and that for 1938-9 it is subject also to social security tax. Accordingly the net profit for the past year would come out at £9147, of which £7477 is distributed in a 5 per cent, dividend to holders of preference and ordinary shares, anu the balance of £1670 goes to strengthen reserves. Gross profit on merchandise and produce comes out at the slightly higher sum of £104,414. but the income from the commission group is reduced to £18,483, or by some £llOO, so that the total revenue is less by £ 1000. Expenditure under salaries and wages has risen to £59,988, and to £11.027 under stamps, telegrams, etc., but, while directors’ fees remain at £I2OO, the miscellaneous and interest groups at £27,915 and £4492 are both smaller. The result is that at its aggregate of £104,622, expenditure has altered little. The relations of expenditure to income have been as follows:

A transfer of £2OOO to general reserve is recommended. As only £1670 is available from the past season's net profit, it will be necessary to draw for £330 upon the floating balance, which will be reduced accordingly to £IB3O General reserves will then aggregate £23,830. Except for a reduction of £lO m calls in arrear, paid-up capital is unchanged. The 4J per cent, secured debentures at £237.354, continue to be the mainstay of the association’s finances. This debt fluctuates within narrow limits, and the liability of interest exceeds considerably the amount distributed in the annual dividend. Sundry creditors at £20,439 show small variation, but the transfers of £BIOS and £1022 for income and social security tax respectively will fall to be added. The reduction of £7OOO, which brings current accounts down to £56,436. is more than counteracted by the larger bank overdraft of £24.534 At the past four annual closing dates, the chief liabilities have stood as under:—

The depreciation allowance on the fixed assets has been raised from £6165 to £7174. Of this sum. £2144, or nearly lj per cent., is devoted to freehold property, which is reduced to £125,371 There is no evidence if expenditure on the freehold property, while leasenold property at £7003 is less by its annual allowance of £217 On the furniture group, expenditure of some £6OOO is indicated, but a wastage allowance of approximately 10 per cent, brings it dow nto £44.966 Fixed assets aggregate £177,340, or £1343 under their figure of July. 1938. Among the liquid assets, there is little change. The two chief units—advances, etc., and goods on hand—at £140,953 and £ 140,967—have altered to an immaterial extent, while sums du. on open accounts have risen to

£59,249, or by nearly £2OOO. The slight increases have occurred in the non-interest-yielding accounts, the in-terest-bearing item of advances being practically as before. Bills receivable at £8309 are also altered, and investments, the nature of which is not stated, continue to be entered at their cost price of £5020. Insurance premiums of £4152 paid in advance, and a social security provisional payment of £261, which, it is assumed, may be placed against the charge of £1022 for that purpose, bring the aggregate of liquid assets to £358.910, or two-thirds of the total assets. The increase of over £6OOO in the assets has been accompanied by one of about half that amount in the liabilities. SYDNEY STOCK EXCHANGE (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Sept. 16. (Received Sept. 17, at 5.5 p.m.) The following were the sales on Exchange to-day:— £ s. d.

DOLLAR RATES The Associated Banks (other than the Bank of New South Wales) on Saturday quoted the following dollar rates on a New Zealand currency basis. They are subject to alteration without notice. „ «U.S.A. Canada (Per £ 1 (Per £1 N.Z.) N.Z.) Dols. Dols.

PROFITS OF CARRERAS, LTD. Accounts of Carreras. Ltd., for the year ended June 30 disclose a profit of £108,544, compared with £81,452 in 1937-38 and £45,130 in 1936-37. The preference dividend of 10 per cent, takes £6BOO, and the ordinary distribution of 33 1-3 per cent. £66,666. The ordinary dividend for 1936-37 was 33 1-3 per cent., and for 1937-38. 20.8 per cent, on the increased capital. The ordinary capital is held by the English company of the same name. The subsidiary company, Carreras (Sydney). Ltd., earned a profit of £7015 for the period before providing £SOO for bad debts. Balance sheet items at June 30 include investment in subsidiary £20,000, debtors £81.940, stocks £285,942, and creditors £62,807.

Called-up General Not Dividend capital reserves profit pref. ord. July 31 £ £ £ p.c. P.c. 1932 260,675 — •33,827 — — 1933 260,675 — •33.827 — — 1934 252,067 — 14,191 — — 1935 149,669 6,558 14,532 5 S 1936 (49,669 13,946 17,114 5 5 1937 „ 149,669 18,736 22,296 5 5 1938 ,, 149,669 22,160 19,361 5 5 1939 149.669 23,830 18,275 8 5

Expenditure Revenue Ratio £ £ p.c. 1932-33 .. .. 103.811 88,368 117.48 1933-34 . .. 86,722 100,912 85.94 1934-35 .. .. 89.848 104,381 86.08 1935-36 .. 98,520 113.834 84.94 1936-37 .. .. 107,588 129,884 82.80 1937-38 .. .. 104,536 123,898 84.37 1933-39 .... (04,622 122,896 85.13

1936 1937 1938 1939 £ £ £ £ Debenture* .. .. 246,278 238,598 238,022 237,354 Current accounts 40,395 65,432 63,448 56,436 Sundry creditors 21.267 24,844 21.132 20.439 Bank 29.067 - 12,952 24.534 £337,007 £328.074 £335,554 £338,763

Commonwealth Bonds — per cent., 1948 ., .. 96 15 0 3g per cent., 1949 .. .. 96 0 0 3| per cent.. 1949 .. .. 99 0 0 3.f per cent.. 1954 .. .. 97 5 0 4 per cent., 1941 .. 100 11 3 4 per cent., 1944 100 15 0 4 per cent., 1950 .. .. 99 13 9 4 per cent., 1953 ., .. 99 15 0 4 per cent, 1955 .. .. 99 18 9 4 per cent., 1957 .. .. 100 0 0 4 per cent. 1959 100 0 0 Bank of New South Wales 27 3 0 Tooths 2 9 6 Anthony. Hordern .. .. 0 13 5 Australian Consolidated Industries 1 13 6 Broken Hilh Proprietary .. 3 7 6 Cash Orders 0 15 0 Huddart, Parker 2 17 9

Selling— 3.27 3-16 T.T. .. .. 2.96 O.D. .. .. 2,961 3.271 Buying— 3.50 3-16 O.D •• .. 3.18J