COMMERCE AND FINANCE

Otago Daily Times, Issue 24410, 23 September 1940, Page 2

COMMERCE AND FINANCE

RESERVE BANK SLIGHT RISE IN NOTE ISSUE STERLING FUNDS HIGHER HIGH LEVEL OF STATE ADVANCES (Per United Press Association) WELLINGTON, Sept. 21. The following is a statement of the assets and liabilities of the Reserve Bank as at the close of business on September 16: —

GORE HORSE SALE MARKET FIRM The monthly horse sale conducted by Messrs Wright, Stephenson and Co., Ltd., Gore, produced an entry of some 60 horses, including a dozen or more hacks and ponies. The market was firm on recent rates, and where quality was offering bidding was brisk by the large attendance of buyers. Top price of £26 10s was paid for an upstanding six-year-old gelding sold on account of Mrs L. Robertson and Sons, Waikoikoi, and purchased by Mr J. R. McMurray. A five-year-old gelding from the team of five horses sold on account of Messrs McDonald Bros., Heriot, brought £2O, A six-year mare from the same team also brought £2O. The demand for hacks a-od ponies was only fair, and only moderate prices were obtained. Sales were:— Four-year gelding «li. five-year gelding £2O, five-year mare £l4, six-year mare £2O six-year gelding £lO. four-year gelding £2O, five-year mare £7/ six-year gelding £l7, nine-year gelding £ls, eight-year gelding £ls 10s, eightyear gelding *£l3 10s, nine-year gelding £ll 10s. nine-vear mare £lO 10s, nineyear gelding £l4 10s. aged mare £ls 10s, seven-year gelding £9, four-year gelding £l2, nine-year gelding £lO, six-year gelding £7 10s, aged gelding £B, six-year gelding £26 10s, seven-year gelding £lB, five-year gelding £l4, 11-year mare £lO. four-year mare £l2 10s. six-year gelding £l, six-vear mare £l7 10s, 10-year mare £9, 10-year mare £2 10s, five-year gelding £l2. seven-year gelding £ll 10s, 11-year gelding £5, aged gelding £2. fivevear mare £l4. aged mare £5, nine-year hack gelding £1 10s eight-year hack gelding £B, eight-year hack gelding £3, seven-vear hack mare £4 10s. five-year hack mare £6. seven-year hack gelding 4 £3 10s, nine-year hack £lO, nine-year pony £4 ss. nine-year hack £4 10s sixyear mare £l4. six-year gelding £l7, flyevear mare £7, seven-year gelding £7, four-vear gelding £ll. six-year gelding £l7 'four-year mare £l2 10s, eight-year mare £4, six-year mare £ 19. four-year mare £ll, three-year hack mare £lO 10s, seven-year hack gelding £2, seven-year hack gelding £3 10s. aged hack mare £4 ss. BEATH AND CO. DIVIDEND AT 5 PER CENT. (Per United Pbess association* CHRISTCHURCH, Sept. 21. Beath and Co. earned a net profit of £7Bis for the year ended August 19 last, against £6406 for the previous year. The gross profit rose sharply from £98.007 to £106,864, but most of the increase was absorbed in additional provision ttor taxation which is estimated at £15,117. against the previous figure of £10,299. The dividend is unaltered at 5 per cent, on both ordinary and preference shares. LONDON MARKETS (United Press Association) (By Electric Telegraph—Copyright) LONDON. Sept. 21. (Received Sept. 22, at 8 p.m.) Friday's closing prices were as follows: Cotton: Spot, 8.40 d; October. 7.83 d. Rubber: Para, 12d; plantation smoked, ll?.d. Linseed oil: £44. Turpentine: 545.

MINING NEWS

NEW RIVER RETURN The official gold return of the New River Gold Dredging Company for the week ended September 19 is as follows: Twenty oz of gold from 6400 yards, treated In 98 hours' dredging time.

COMMERCIAL SUMMARY BULK WOOL PURCHASE ' (United Press Association) (By Electric Telegraph—Copyright) LONDON, Sept. 21. (Received Sept. 22. at 7 p.m.) The Wool Control's action in increasing prices for wool surprised and astonished almost the entire industry. The bulk purchase of tiie South African clip meant that, the United Kingdom would receive double the normal annual consumption of wool. It was taken for granted that the issue prices would be lowered, especially as all reports from South America emphasised the disadvantageous effect the high prices were having on British endeavours to expand exports. Textiles business in the north has actually been held up because of the belief that lower prices were in prospect. The corresponding increase of the export issue prices, however, means that foreign manufacturers buying wool from .Britain suffer to the same degree. Furthermore, foreigners will not be given the advantage of having raw material costs guaranteed for a long period ahead. The increasing quantities of homegrowns seriously affected, the imported apples prices, which are described as ridiculously low. The air raids have not disorganised the distribution of butter and cheese, and high tributes are paid to the Ministry of Food's timelv decentralisation of stocks before the Blitzkrieg. MERCHANDISE MARKET STEADY SUPPLIES OF SUGAR The Omana, the Waimarino, and the Port Waikato landed supplies of sugar last week. The next cargo of sugar is due to arrive on September 26. by the Waiana. Overseas Goods A considerable quantity of overseas goods has just been landed. These include Morton's capers and Seidlitz powders, cornflour, Brazil nut kernels, nutmegs, ground nut oil, pine apples, tapioca, and sago,' linseed oil, mace, and a quantity of spirits. Caustic Soda A sharp advance has taken place in the price of New Zealand-manufactured caustic soda. Wool Fibre Cleanser A new steel wool fibre cleanser, " 13" pads, manufactured in Wellington, has made an appearance on the market. Crystallised Cherries Some local merchants are sold out of their stocks of crystallised and drained cherries. Further, supplies will not be available this year. Camphor Ice Chesborough camphor ice is on the 100 per cent, restricted list. A line to take the place of this commodity is now being manufactured in Christchurch. Supplies of Dates Further supplies of dates arrived from Australia during the week. These have come to a fairly bare market, and despite the high prices have met a ready sale. Callfornlan Prunes Bulk Californian prunes are in short supply, but a further shipment should be to hand in about three weeks' time. Cigarettes It is reported that there will be few, if any, Christmas packs of cigarettes. 50's. available this year.

FRUIT AND PRODUCE WORLD

Reilly's report selling:— Per Dozen.—Eggs: Super, Is 7d; standard, Is sd; medium, Is 4d; pullets', Is. Carrots, Is. Parsnips, Is. Lettuce, Is Gd to 2s 6d. Asparagus, 16s to 18s. Freesias, 5s 6d to 6s 6d. Narcissi: Trumpets, 2s to 6s. Hyacinths, Is to Is 6d. Each.—Champion egg crates: 24 dozen, 18s 6d. Per Half-case.—Pears: Winter Cole and Winter Nelis, 6s 6d. Island tomatoes, to 16s. Per Case.—Australian and New Zealand lemons: Market rates. Australian navel oranges: Market rates. New Zealand grapefruit, 10s to 12s. Bananas: Ripe Samoans, 255. Pears: Winter Cole and Winter Nelis, 13s. Apples: Extra fancy and fancy Delicious, 8s Gd to 9s 6d; Cleopatras, 8s to Ps; Sturmers. 8s 6d to 9s 6d; Granny Smith, 7s Gd to 8s 6d; commercial grades, 6s to 8s; cooking apples, 7s to Bs. Queensland pineapples, 22s Gd to 295. Spring cabbage, 3s. Per Pound. —Rhubarb, 3d to 4Jd. Niue kumeres, 4Jd. Whitebait, 2s 3d to 3s. Artichokes, Id. Butter: Storekeepers', Is 2d; bulk, to Is 3d. Bacon: Prime, Is 4d. Clover honey, BJd. Beeswax, Is 6d. Walnuts. 8d to lOd. • • Per Bag.—Cauliflowers, 6s to Bs. Savoy cabbages, 2s to 3s. Per Hundredweight.—Onions: Canterbury. 14s. Potatoes: King Edwards, 4s to ss; whites, 3s to 4s. Lime sulphur, 3s 9d gallon. Restar: J-gallons, 4s 6d. Semesan: lib, 8s 6d. Red Rose nicotine sulphate: 101 b, 455; 21b, 15s; lib, 8s Gd; Jib, ss. D.P. Derris for white butterfly control: lib tins, 2s 3d; 101 b tins, 15s. Fowl wheat, to 6s 9d: second grade, 6s. Maize, 7s 6d. Oats: Gartons, 4s 6d per bushel. Crushed oats, 12s 6d. X Keys meatmeal, 15s per bag. Oyster grit. 6s Gd per bag. Bran, £5 10s. Pollard, £6 15s. Chaff: 8.0.5., £6 5s to £6 10s. Oaten straw, £4 10s. Clover hay, £6 5s per ton. Palmer's chick food, 21s 6d per 1001 b. Per Pair.—Poultry: 61 cockerels at 2s 2d to 7s 6d, 100 hens at 4s lOd to Bs, and 31 pullets at I'Ts Gd to 13s per pair, 5 turkey gobblers at 9d per lb. REILLY'S CENTRAL PRODUCE MART, LTD.. Moray place, Dunedin, C.l.

COMPANY BALANCE SHEETS

THE CANTERBURY FARMERS' COOPERATIVE ASSOCIATION, LTD. Ca!led-up capital: 1932. £260,675: 1933, £254.897; 1934, £252,067; 1935-40. £149,669. General Net Dividend.

After deduction of a provision of £ 18,370 for income, social security, and national security taxes, the net profit comes out at £9937, which shows an increase of £790 on that of the previous year, in spite of a 100 per cent, increase in the taxation figure on this occasion. The distribution to shareholders remains at 5 per cent, on both ordinary and preference holdings, which will absorb £7478 and leave £2459 to swell reserves. Apart from taxation, expenditure has been fairly steady in recent years. The decrease under salaries and wages to £58.809 is more than counter-balanced by the increase to £14,822 of the stamps, telegrams group. Directors' fees are unchanged at £I2OO, but the reduction of the miscellaneous group to £26.163 outweighs the higher charge of £5041 for interest exchange and rent. Expenditure aggregates £106.036 as against £104.622, but with the larger revenue of £19,047 and £115.297 from commission, and from gross profit on merchandise end produce respectively, the margin between expenditure and revenue has materially increased. Exclusive of taxation, the relative positions in late years have been as follows: Expenditure. Revenue. Ratio.

Apparently capital expenditure has not been on a large scale during the period. Freehold property, which is allotted a depreciation provision of £2158, or 1$ per cent., approximately is reduced to £124.063. Leasehold property at £7003 is subjected to an allowance of £2lO, which leaves it at £0787. but it is in the furniture group that expenditure and a provision for wear and tear are most apparent. The gross figure of £47,908 indicates an expenditure of some £3OOO and the allowance of £4806, or 10 per cent., approximately makes the net amount £43,102. The full depreciation provision of £7lßl is practically unchanged, and should be sufficient to compensate for all wastage. Fixed assets aggregate £173,952, or £3388 less than at July, 1939. The two chief liquid assets have altered considerably since the beginning of the financial year. Whereas advances, etc., and stock were then almost level, the former has now dropped to £113,470, and the latter has risen to £196,346. It would appear that the demand for financial assistance has fallen off, but the effect of the growth in the non-revenue-earning asset simultaneously with the decline in the revenue-earning asset is not visible in the past vear's accounts. Open accounts of £57,763 and bills receivable at

£6317 are both smaller, while investments at £2770 are nearly halved. Payments in advance of £1749 bring the total liquid assets to £378,415, a general rise of nearly £20,000. all of which is due to stock. Reserve account is intact at £22.000. and with the floating balance swelled to £4389 by the £2459 unallotted of this net profit, general reserves aggregate £26,289. In addition, a sum of £209 is reserved against bad debts. The chief outside indebtedness continues to be the 41 per cent. secured debentures which at £235.749 have fallen slightly. The effect of this item in the association's finances may be gauged by the fact that it exceeds the paid-up capital by over'so. per cent., and its cost in interest exceeds the shareholders' dividend bv over £3OOO. Current accounts and sundry creditors at. £69.629 and £31,171 respectively, are both higher, but the bank overdraft at its net figure of £6723 shows a substantial reduction. A comparison of indebtedness at recent closing dates comes out as under:— 1937. IB3S. 1039. 1940. £ £ £ t Debentures .. .. 238,598 238.022 237.354 235,749 Current Recounts 65.432 63.443 56,436 69.629 Sundry creditors 24,844 21.132 20.439 31.171 Bank £328,874 £335.554 £448,783 £343.272 An increase of approximately £16.000 in the total assets, after writing off £7lßl for depreciation, leaves a balance in the favour of assets of £11,500.

LIABILITIES Last week. £ 1.500.000 This week. 1. General Reserve Fund .. 1.500.000 19,998,630 20.028,497 3. Demand liabilities— 4,784,577 5,535,409 14,775,448 14,516.297 288.448 159.921 — - 5. Liabilities in currencies other than New Zenland currencies .. .. 12,000 634,003 6. Other liabilities .. .. 853,713 832,917 '£42.212,817 £43,207,653 ASSETS 7. Reserve— 2,801.852 2,801.852 (b) Sterling exchange .. 9.756.282 10.217,038 (c) Gold exchange .. ., — — 8. Subsidiary coin .. .. 114,348 113,572 9. Discounts — (a) Commercial and agricultural bills — "~ (b) Treasury and local body bills .. ■■ ■—■ """ 10. Advances— (a) To State oi 8tat» undertakings— (1) Primary Products Marketing Depart3.219,511 3,247,788 (2) For other purposes 23,540.000 24.040,000 (b) To other public au- — ~~ — — 2.533.219 2,553,219 2. Bank buildings .. .. — — 247.603 234.182 £42,212,817 £43.207.653 Proportion of reserve (No. 7 less No. 5) to notes and other demand liabilities .. 31.486% 30.776% Sterling exchange Is • expressed In New Zealand currency.

July reserves. nrom. nret. on 31. £ C p.C. p.e 932 — M2.827 — — 933 — •15.443 — — f934 — 114,191 — — 035 .. 6.558 i 14,532 5 5 D3G .. 13.946 tl7,U4 5 5 1937 .. 18.736 t22,29B 5 5 933 .. 22,160 11,900 5 5 939 .. 23.830 9,147 S 5 940 .. 26,289 9,937 5 5 * Lois. t Subject to tax.

£ £ p.c. 1934-35 .. 89,848 104.381 86.08 1935-36 96,520 113,634 84.94 1936-37 .. 107,588 I29.8S4 82.80 1937-38 .. 104,536 123,898 84.37 1938-39 .. 104.622 122.896 85.13 1939-40 ., 100,036 134,343 78.93