COMMERCE AND FINANCE

Otago Daily Times, Issue 24406, 18 September 1940, Page 2

COMMERCE AND FINANCE

j THE SHARE MARKET DUNEDIN STOCK EXCHANGE FIRM TONE MAINTAINED i Long-term Government . loans again showed an advance on inquiry on the Dunedin Stock Exchange yesterday, and the remainder of the issues continued to meet with a steady demand. Bank of New Zealands were in slightly better demand with a buyer at £2 2s 3d, business at £2 2s 6d having been reported. Union Banks were also reported to have been dealt In at £7, the market closing with a buyer at £6 15s and a seller at £7 ss. Standard Insurances were in firmer dei mand at £2 17s 6d. Southland Frozen Meats showed an improvement In both the paid-up and the preference issues, which were sought after at £1 15s fid, and buyers of South Otago Freezings were prepared to give £5 3s. Trustees, Executors were also in better demand at £4 ss. Mosgiel Woollens were inquired for at £lO 7s Cd. In miscellaneous industrials, Donaghy's Ropes were slightly firmer, with a buyer at £2.14s 3d and a seller at £2 16s. G. J. Coles rose appreciably, buyers offering £3 4s 6d, while sellers asked £3 8s 6d. and New Zealand Drugs improved fractionally, the closing buying offer being £3 13s 6d. YESTERDAY'S SALES DUNEDIN Sales Reported £ s. d. Bank of New Zealand .... 22 6 Union Bank ; 7 0 0 Woolworths (Sydney) .. .. 018 0 Electrolytic Zinc (ord.) .. .. 211 G AUCKLAND Sales on 'Change.—Stock, 1940-43, 4 p.c., £lOl 2s 6d; Stock, 1943-46, 4 p.c. (late sale). £103; Auckland G-as (pref. stock; odd lot; late sale), £lOl 15s; Commercial Bank of Australia, 14s lOd; Bank of New Zealand, £2 2s 6d; South British (late sale). £2 10s; Standard, £2 18s; Newton King (pref.), Us; Auckland Gas (late sale), 8s 2d, 8s 3d; New Zealand Breweries (late sale), £1 Iss; Dominion Breweries, £1 Us 6d; British Tobacco. £2 8s; Broken Hill Pty. (late sale), £2 5s 9d; Farmers' Trading (2), £1 0s 3d; New Zealand Drug, £3 14s; New Zealand Drug(rights), £1 6s 3d, £1 6s 7Jd; Woolworths (Syd; late sale). 18s; Mount Lyell, £1 7s 6d; Mount Morgan (odd lot), 8s Id. WELLINGTON Sales on 'Change.—Bank of New Zealand (late Mon.), £2 2s 6d; Beath and Co. (late Mon.), 15s 6d; .Commercial Bank of Australia, 14s lOd, 14s 7d; Bank of New Zealand, £2 2s 6d; National Insurance, 18s 9d; Oamaru Woollen, £1 0s 3d; Farmers' Trading, £1 0s 3d; Mac Duffs (ord.). 9s 9d; New Zealand Drug (2), £3 14s; New Zealand Drug (rights), £1 6s 6d, £1 6s 3d; Woolworths (N.Z.), 16s 68d; Union Bank, £7; National Insurance, 18s 9d; Selfridges (N.Z.), 4s. CHRISTCHURCH Sales on 'Change.— i p.c. Stock, 1954-58, £lO7 15s: Bank of New Zealand (2), £2 2s 3d; McLeod Bros., £27. Sales Reported.—4 p.c. Stock, 1943-46, £103; Union Bank of Australia, £7 2s 6d; British Tobacco (2), £2 8s; Electro. Zinc (ord.), £2 lis 6d; Woolworths (Syd.; ord.; cum div.; 4), 18s 3d. UNITED STATES FIRMS BUYING INTO AUSTRALIA BRITISH COMPANIES SELLING <From Our Own Correspondent) SYDNEY, Sept. 12. The United Slates is buying into Australia. Control of certain Australian firms is passing into United States hands because of Britain's difficulties in financing her American purchases. Commonwealth Government officials have learned of instances where British firms, with subsidiaries in Australia, have sold their Australian interests to get dollar exchange. In one case, this has resulted in the Australian executive, formerly responsible only to the parent company, being replaced by Americans. These transfers from United Kingdom to United States direction are expected to become more frequent. Britain is financing purchases of essential war materials from the United States by liquidating her capital investments there. She is thus deprived of revenue which these investments had earned for her, and if her trade with America does not improve more such sales must be made to provide dollar exchange. British firms dependent upon American materials but with few financial resources in that country are disposing of their Dominion subsidiaries to get the exchange necessary to keep the parent company going. A United States company making heavy engineering equipment is said to be negotiating with the Commonwealth to establish in Australia an industry which could supply the entire sterling group with its product. Its exports from this country alone would, it is estimated, be worth £300.000 a year. Economic advisers to the Australian Government exoressed the opinion that by Januarv. restrictions on imports from nonsterling countries will have to be greatly extended. Present restrictions are estimated to be saving about £15,000,000 a vear in foreign exchange, but Australia is still said to be importing more goods than can be paid for under war conditions.

STERLING EXCHANGE FALL IN LONDON FUNDS TRADING BANK ADJUSTMENTS The fact that the sterling exchange held bv the Resei-ve Bank has fallen by over £1,000,000 for two successive weeks, together with a similar movement in deposits of the trading banks, is attributed by banking circles to periodic adjustments made between the Reserve Bank and the trading banks. There are no overseas loans due for repayment at this time of the year. The usual day-to-day business transacted by the trading banks is contained in a monthly return to the Reserve Bank, and adjustments are made periodically to reimburse the trading banks. As all the proceeds of exports under the commandeer agreement with Great Britain are paid to the London account of the Reserve Bank on shipment, only the minor exports are handled by the trading banks. At this time of the year particularly these exports amount to very little. On the other hand, imports are reported to have been fairly heavy in recent months so that any adjustments would be in favour of the trading banks. As sterling funds have been rising steadily in recent months, it is thought possible that the Reserve Bank has now taken the opportunity to make the necessary reimbursements.

LATEST QUOTATIONS BANK OF NEW ZEALANDS FIRMER The following are yesterday atternoon's buying and selling quotations on the Dunedin Stock Exchange, which are subiect to the usual brokerage:—

UNLISTED STOCKS All stocks In this section are not quoted on the official list, and transactions are subject to a different rate of brokerage:— Buyer. Seller.

AUSTRALIAN WOOL CLIP EXCESSIVELY DRY SEASON The excessively dry season in Australia is responsible for a shrinkage in the wool clip now coming to Australia's seaboard for appraisement. Some estimates are being made that the cheque for the year will be £57,000,000, as against nearly £65.000,000 last season. The numbers of sheep have declined slightly, and the average yield per sheep is down by about 5 per cent. Less wool will be available during the current year than last season, when 3,604,316 bales were shorn, and returns this season will not be augmented by the presence of large carryover stocks, as was the case in 1939-40. IMPORT LICENCES VIEW OF BRITISH INTERESTS At a meeting of the council of the United Kingdom Manufacturers and New Zealand Representatives Association (Inc.), which was held in Wellington, the matter of the fourth period import licences was considered. These are at present due to expire on December 31, but in view of the great difficulties under which United Kingdom manufacturers are at present working it was not possible in some cases for goods to be shipped in time to arrive here by December 31. It was decided to make representations to the Minister of Customs asking for an extension of the time for the use of these licences to June 30, 1941. Such an extension, it was felt, would be a contribution to the United Kingdom's efforts to maintain its export trade. Every effort was being made oy the United Kingdom to maintain —if not expand—its export trade, and the home market was in some cases being kept short in order to cater for the export trade. It was also decided to ask the Minister to issue the fifth period licences as early as possible, and to issue them to cover the whole of 1941 and not for six months period as has been observed in the past. NEW ZEALAND NEWSPAPERS, LTD. INTERIM DIVIDEND UNCHANGED New Zealand Newspapers, Ltd., announce an interim half-yearly dividend of 8d a share. Transfer books were closed yesterday until October 1, inclusive. The dividend, which is at the rate of Is 4d a share, or 8 per cent, per annum, is unchanged from a year ago.

BANK RATES SHORT-TERM DEPOSITS REDUCTION ANNOUNCED (Per United Press Association; WELLINGTON, Sept. 17. The Associated Banks announce that the rates of interest payable on fixed deposits received or renewed on and after to-mor-row, will be as follows: Three months and under six months, 3 per cent. Six months and under 12 months, 1J per cent. Twelve months and under 24 months, 2\ per cent. Twenty-four months, 2J per cent. The 12 and 24 months' rates are unchanged, the reduction being in the three and six months' rates. Short term money is unemployable by the banks at the present time.

IMPORT CONTROL FIFTH-PERIOD LICENCES (Peii United Press Association! WELLINGTON, Sept. 17. Details of import licences for the' fifth period are now being completed by the Minister of Finance, Mr Nash, who is endeavouring to arrange to have them published by the end of the present week. During the last few weeks the Minister has been engaged with the departmental officers in completing the schedule. LORNEVILLE STOCK SALE GOOD QUALITY BEEF (Per United Press Association) INVERCARGILL, Sept. 17. In practically all sections, the yarding at the weekly Lorneville stock sale to-day was smaller numerically than the previous week. The entry in the. fat sheep section was little more than half that offered the.previous week, and the quality, taken all reund, was only fair. The yarding included a few pens of good quality Wethers, but very few prime ewes. The presence of several outside buyers resulted in a rise of from 4s to 5s a head on rates ruling at the last sale. Prime heavyweight wethers brought from 44s 9d to 48s; prime medium-weight wethers, from 42s 6d to 455; medium, from 36s to 38s; and lighter, from 32s to 355, Prime mediumweight ewes made from 35s to 37s 6d; medium, 32s to 345; and lighter, from 28s to 30s. The fat cattle yarding was a good quality one, some exceptionally prime steers and heifers being offered. The market showed an advance of from 15s to £1 a head all round. Prime heavy ox beef made up to £23; prime handyweight bullocks, from £l6 to £18; lighter and unfinished, £l2 to £l3 10s. Extra prime cows made up to £18; good handyweight cows, from £l3 to £ls; lighter. £9 to £lO 10s. Prime heavy heifers brought to £l6 10s; medium-weights, from £l3 to £ls; with lighter sorts from £lO to £ll 10s. COMPANY BALANCE SHEETS THE MILBURN LIME AND CEMENT COMPANY, LTD. Paid-up capital: 1920. £117,116; 1921-26. : £130,300; 1.927. £147,723; 1928, £182,575; 1929, £199,987; 1930-40, £200,600. Reservsj Net profit Dividend

A decline of £8767 has reduced the net profit for the past year to £11.061. No alteration is made in the shareholders' distribution. The dividend rate is retained at 8J per cent., the rate at which it has stood for the past six years, and;the net profit In consequence is overdrawn by £6439, which reserves have to make good. ; . ~-, As, beyond the payment of £6OO : for directors' fees, and a receipt of £6 for transfer fees, no figures are given to show how the net profit is arrived at, the cause of the decline is not apparent. While taxation may be assumed to have played an important part in bringing about the smaller net profit, it may n6t have been the sole factor, and the fact that the directors recommend that the dividend rate should not be affected almost indicates that they regard the set-back as temporary. Among the deductions made before the net profit on trading is shown, there may be some of a more or less arbitrary nature, and the extent of the allowances may have an important bearing on the net surplus. After a check during 1937-38, the fixed assets group has resumed its downward course. At £104,863, it is smaller by nearly £5500, or by some 5 per cent, irrespective of any additions that may have been made during the year. As land and buildings form a part, the allowance for depreciation, if no realisation has taken place, would seem to be a generous one. The MakareaO plant reserve of £BOOO is still intact. In proportion to the total assets, the fixed section and investments stand as follows: Total Fixed Invest-

Investments in New Zealand Government stock, and otherwise, remain at £74,218. In recent years their tendency has been to diminish, but it is not stated on what basis their book value is arrived at. The holding in the subsidiary company of the Ewing Phosphate Company, Ltd., which was reduced during 1935-39 by £IOOO, remains at £9OOO. The profit made by this company for its latest financial year has not been included in the books of the parent concern. Bills receivable at £4368 are little changed, but sundry debtors (£34,969) and Stock (£51,214) conjunctly have risen nearly £4OOO. As the bank balance concurrently has increased from £4809 to £8213, the turnover appears to be growing. In spite of the amount written off the fixed portion, assets as a whole have grown to £286,846, or by £IB3O. Outside liabilities are grouped at £29.1»f7 —an increase of approximately 40 per cent. Provision for income tax is doubtless the chief factor in the increase, which, however, is not so greatly in excess of that of two years ago. The four reserve accounts —viz., general (£25,0001. doubtful debts (£3000), accident insurance (£10,000), and Makareao (£8000) are unaltered, but, owing to the encroachment of £6439 upon the floating balance, which is reduced in consequence to £ 1559, to meet the dividend, visible reserves are reduced to £47,559. The margin between assets and liabilities is lessened accordingly. SYDNEY STOCK EXCHANGE (United Press Association) (By Electric Telegraph—Copyright) SYDNEY, Sept. 17. (Received Sept. 17, at 11 p.m.) The following were the morning sales on the Stock Exchange:—Commercial Bank of Sydney £l9 Is, Bank of New South Wales £26, Anthony Hordern 13s 4d, Australian Consolidated Industries £1 15s 6d (corftributing) 17s, British Tobacco £2 8s 9d, Broken Hill Proprietary £2 4s 3d. WHITTOME, STEVENSON* LTD. (Special ro Daily Times) AUCKLAND. Sept. 17. Messrs Whittome, Stevenson, and Co., Ltd., earned a net profit of £3895 for the year ended June 30, compared with £3078 in 1939 and £2839 in 1938. The dividend has been reduced from 6J to 6 per cent. Payment is free of social security and national security taxes. PROPERTY SALES Messrs Haggitt, Duthie and Campbell report having sold a wooden bungalow at 64a Clyde street to Mr S. Cottle, on behalf of the absentee owners, Messrs J. and J. Stewart. The same firm has also disposed of Mr W. McCulloch's residence, 37 Normanby Street, at a satisfactory price to Mrs J. J. Morrison.

N.Z. GOVERNMENT LOANS Buyer. Seller. £ s. d. £ : s , d ;{ p.c. Bonds, 1939-41 .. 99 10 0 — 3 p.c. Stock, 1939-41 .. 99 10 0 — 31 p.c. Bonds, 1953-57 100 0 ?,i p.c. Stock, 1953-57 100 0 0 — 0 — 33 p.c. Stock, 1941 .. 100 0 0 —• 4 p.c. Stock, 1940-43 .. 100 10 0 — 4 p.c. Bonds, 1943-46 .. 102 15 0 — 4 p.c. Stock, 1943-46 .. 102 15 0 — 4 p.c. Bonds, 1946-49 .. 105 0 0 — 4 p.c. Stock, 1946-49 .. 105 0 0 — 4 p.c. Bonds, Nov., 104 10 0 — 4 p.c. Stock, Nov., 104 10 0 — 4 p.c. Stock, 1949-52 .. 106 0 0 — 4 p.c. Bonds, 1952-55 .. 106 10 0 — 4 p.c. Stock, 1952-55 .. 106 10 0 —- 4 p.c. Bonds, 1954-58 .. 107 5 0 — 4 p.c. Stock. 1954-58 .. 107 5 0 108 0 0 MINING Austral N.Z. Mining (£1) 1 2 B — Big River (Is) .. .. 0 0 6 0 0 Clutha River (2s) .. 0 1 0 0 l 9 Gillespie's Beach (is) 0 0 41 0 0 6 0 7 0 0 7 9 Mossy Creek (Is) 0 1 0 —- 0 0 21 : Nokomai (5s) .. .. 0 0 11 0 1 3 Okarito (5s) .. .. 0 0 6 Waihl Investments (5s) '— 0 6 0 Waltahu (5s) .. .. — 0 0 9 BANKING N.Z. (£1) 2 2 3 — N.Z. (long D; £1) .. 1 7 0 1 10 0 Natl of N.Z. (£2 10s) 1 19 0 — 6 15 0 7 5 0 INSURANCE National (7s) .. .. 0 18 8 0 18 3 Standard (£1) .. .. 2 17 8 — SHIPPING Howard Smith (£1) .. _ 1 3 0 P. and O. Del Stock (£1) — 1 4 0 U.S.S. Co. (pref.; £1), 1 6 0 — MEAT PRESERVING Canterbury Meat (ord.; £7 10s) 10 5 0 — Canterbury Meat (pref.; £5) .. .. 6 10 0 —. N.Z. Refrig. (paid; £1) 1 0 0 — N.Z Reft-ig icont.; 10s) 0 9 4 0 9 8 South. Frozen Meat (paid; £1) .. .. 1 15 6 — South. Frozen Meat (pref.; £1) .... 1 15 6 — South Otago Freezing (£5) 5 3 0 — LOAN AND AGENCY N.Z. Guarantee Corp. (3s) .. — 0 3 8 Perpetual Trustees (18s) 2 10 0 — Trustees, Executors (£3) 4 5 0 — Wright, Stephenson (ord.; £1) .... — 1 0 3 Wright. Stephenson (pref.; £1) .... 0 19. 9 — COAL AND OIL

Kaitangata (16s) .. 1 11 6 Westport (10s) .. .. 1 2 4 1 2 9 Westport - Stockton (ord.; 10s) .. .. — 0 2 6 Westport - Stockton (pref.; 10s) .. .. 0 3 0 — Taranaki Oil (£1 4s 7d) — 0 6 6 WOOLLEN COMPANIES Bond's Hosiery (£1) 1 7 0 _ Bruce (ord.; £1) .. 0 18 1 — Bruce (pref.; £1) 1 0 0 — Kaiapoi (pref.; 17s) .. 0 17 0 — Mosgiel (£4) .. .. 10 7 a — Timaru (£1) .. .; 0 11 6 — Wellington (pref.; £5) 6 10 0 — MISCELLANEOUS Associated News (pref.; £1) .. .. — 1 0 0 Aust. Iron and Steel (pref.; £1) .. .. 1 5 0 — British Tobacco (£1) — 2 8 0 Broken Hill Pty. (£1) 2 5 0 2 6 0 Charles Begg and Co. 1 1. 0 13 C Crystal Ice f£l) .. 2. 0 0 ■_ D.I.C. (pref.; £1) .. 1 3 3 1 4 6 Dominion Fertiliser 1 7 0 — Donaghy's Rope (£1) 2 14 3 2 16 0 Stock Exchange Prop. (£1) — 1 15 0 G. J. Coles (£1) 3 4 6 3 8 6 I.C.I, (pref.; £1) 1 4 0 — MacDuffs (ord.; £1) 0 9 3 — MoKenzies Dept. Strs, (£1) * — 2 5 0 McLeod Bros. (£10) .. 26 0 0 — Natl. Electric (£1) .. 0 17 3 0 18 0 N.Z. Drug Co. (£2) .. 3 13 6 3 15 0 N.Z. Drug (rights) .. 1 6 0 — Farmers' Fertiliser (pref.; £1) .. .. 1 1 6 — Regent Theatre (£1) — 1 0 6 Southland Ice Cream (£1) 1 2 6 — Wilsons Cement (10s) ■— 0 19 7 Woohvorths (Sydney; 0 17 10 0 18 6 BREWERIES N.Z. Breweries (£1) 1 15 0 Dunedin (£1) .. .. — 1 5 0 Tooths (£1) — 2 16 0 Carlton (£1) .. .. 3 1 0 — AUSTRALIAN MINING Broken Hill South (5s) 1 5 0 _ Electro. Zinc (ord.; £1) 2 11 0 2 11 fi Mount Lyell (£1) .. 1 6 0 1 8 0 North Broken Hill (5s) 1 16 0 — Wellington Alluvials (2s) .. — 0 5 0

£ s. d. £ s.d Dunedin Ice Cream .. 14 6 — Mackintosh - Caley - Phoenix 0 8 0 0 12 0

July 31 . £ £ p.c. 1920 .. .. , .. 16,317 11,951 10 1924 .. .. 16,071 18,101 10 1928 .. ., , .. 22.992 19,165 10 1932 .. .. , .. 24.969 14.835 7'/i 1936 .. . . .. 46.661 20.059 m 1937 .. ., , .. 48,420 IG.26S 8% 1938 .. .. . .. 51,670 23.730 8% 1939 .. ., , .. 53,988 19.828 8 8 /« 1940 .. ., , .. 47.559 11.061 &v<

asset! assets Ratio ments Ratio July 31 £ £ p,c. £ P.C 1935 . . 267,740 120.656 45.14 89.218 33.32 1936 . , 279,273 112,098 40.14 94,218 33.74 1937 . . 275,189 II1,^34 40.66 89,218 32,42 1938 . . 286.829 116,319 40.55 79,218 27,62 1939 . , 285.016 110,327 38.71 74.218 26.04 1940 . . 286.846 104,863 36.56 74,218 25.87