Markets and Money

Sun (Auckland), Volume I, Issue 134, 27 August 1927, Page 5

Markets and Money

A Review for Business Men

ON THE ’CHANGE

business quiet MINING IDLE Business on the ’Change is quiet, though there is little change in the “nSals continue to feature as one of /most popular sections, and Re- “•* s pave come back to see sales at ? representing Is below the market ‘<’•ll weeks ago. Most other shares in "I’is section continue to attract firm gilt-edged market is attracting ~.A“ attention, and quotations for eerj‘ a ln classes of stocks are slightly e “ ier ' SALES REGISTERED it yesterday afternoon's call. —Rerfod- Commercial Bank of AusP O ,. '£l 7s Sd; Renown Coal. 7s; ,’vTi 19s 6d; New Zealand Inscribed Soik 1339. 4J per cent.. £96 ss. This morning’s business. —On South British Insurance, £2 ißj Reported: Renown Coal, 7s. TO-DAY’S QUOTATIONS Closing quotations at to-day’s call * ere:_ * Sellers. Buyers.

MAIZE MARKET EASIER

POTATOES ERRATIC NO FORWARD BUYING Potatoes are erratic,’ and with > the P soluth P the ease slightly next week. Maize is f easier with fair stocks on the snot thou S h bad weather down the coast deli S J.r BP J na ® h = Mln S and holding up t i'iT!!’ °i h = r Brain and produce , nes command little attention. i Merchants take little notice of the talk , l " l ' le Sout h regarding a possible potato ; portage, and maintaining present stocks, make little endeavour to cover future requirements. The Southern market has been erratic of late, not keep- • no® im|rovement > 'and r the"'market if°« ■ £5L ythi ” s \ slightly easier. The moment I demands b “s in ess is suggested, however, 1 &oai well beyond the present parity and no future contracts of any , note are reported. 5 were rather short on the spot Ssfi l thearnva l of the Katoa yesterday \Mth a fairly large shipment. Further 3?!5+? ents are due next week. Thus indieations are that, locally, prices will li? Ve easier tendency. Next week’s £7°sf to St £7 e lOs" 1 " 6 Sh ° Uld *' anße from wSSS there demand for seed potatoes and ampfe stocks are held for all requirements. DEMAND FOR MAIZE .Arrival of maize have been fairly heavy during the past week or so, but there is still a steady demand. T 1 e h lm P ro y in ff in quality, as the weeks advance, but the bulk of the arrito i? e Placed into immediate for^stoHng 11 * owin& to being too soft The market has eased over the week to ss e 9d to P 5s Ce ild n the Whart ransins trom h uture business is suspended pending tL\® s rr ann ?- Uncem , c . n , t of the Government’s tar ft policy, which some merchants hope S e A r / dl,ced at least 75 P«r cent. The feouth African qrop is reported to be good anq even with the present tariff bar could be landed in Auckland at approximately os 9d a bushel. if the duty was reciuced to 6d a cental, as merchants hope, then the local market would have to come the wharf! parity ° f at least 5s 3<l on On this account buyers have been chary of future contracts. The crop down the coast, especially in Poverty Bay is reported to be heavy and, even without actual South African competition, it is quite on the cards that next”inonth ease sli &btly within the Ample stocks of Melbourne Brown Spanish onions are held on the spot and are selling in the vicinity of 10s 6d through store, Auckland. Fowl wheat is a little easier over the week, and sells through store at from 8s 3d to 8s 6d. Bran and pollard, though offering at considerably lower values than has been .^i_ * or an ' I ber of years, meets with only a limi demand. Oats are unclia -;ed, selling through store at about 4s 2d for B Gartons. Chaff is meeting with a quiet though steady demand at from £9 5s to £9 10s a ton. LONDON MARKETS CONSOLS AND COLONIAL STOCKS By Cable.—Press Association.—Copyright LONDON, Thursday. The following table gives quotations for consols and colonial inscribed stocks compared with those of August 18: Price. Variation.

tHigher. ‘Lower. BANK OF ENGLAND RETURNS The Bank of England returns for the week ended August 25, compared with those for the week ended August 18, are as follow: — Aug. 25. Aug. IS. £ £ Note circulation .. 336,430,000 136,937.000 Coin 151,492,000 151,949,000 Reserve 34,812,000 34,862,000 Govt, deposits .. 17,424,000 17,794,000 Other deposits .. 102,737,000 100,458,000 Govt, securities .. 55,422,000 49,957,000 Other securities .. 48,140,000 51,588.000 Proportion of reserve to liabilities 28.90 29.40 SHORT LOANS AND BILLS Short loans, Si per cent., same as last week; three months’ bills, 4 3-S percent., same as last week. FOREIGN EXCHANGES Foreign rates of exchange on August 25. compared with par rates, or as averaged first half of 1914, are:— Aug. 25. Aug. 22. Par. Brussels, fr 34.92 34.93 25.22* Paris, fr 124.00 124.00 25.22 k Stockholm, knr. .. 38.11 18.33 38.12 Oslo, knr 18.70 18.67 18.12 Copenhagen, knr. 18.35 38.15 18.12 Berlin, r.m 20.42 20.42 Rome, lire 89.25 89.25 25.225 Calcutta, pence ..175 17g 24 Yokohama, pence 23 7-16 23 7-16 24.43 Hong Kong, pence 23§ 238 24 Montreal, dollars 4.86 1-16 4.86 5-16 4.866 New York, dol. 4.86 5-32 4.86 3-16 4.866 Amsterdam, fl. .. 12.135 12.131 12.107 Batavia, florins .. 12.133 12.135 THE METAL MARKETS (Quotations on August 22 in parentheses) Copper.—Spot, £55 10s 7£d (£55 4s 4id); three months, £55 ISs 7£d (£55 11s 10Jd). Lead.—Spot, £22 12s 6d (£22 15s); three months, £23 (£23 2s 6d). Spelter.—Spot. £27 12s 6d (£27 17s 6d): three months. £27 10s (£27 16s 3d). Tin.—Spot, £290 10s <£2S9 11 s 3d); three months, £2SS 7s 6d (£284 12s 6d). Silver.—Standard, 251 d (24 15-16 d) per oz ; fine, 27 l-8d (26 15-16 d). P. AND O. SHARES P. and O. (deferred stock) is quoted at £284 10s. WHEAT, FLOUR AND PULSE Wheat.—Cargoes are dull, in sympathy with America, and closed at a decline of 3d to 6d. Part Australian, 54s 3d. Parcels are in poor demand at from 3d to 6d down. Liverpool futures: October, 10s lljd per cental; December, 11s Old: March, 10s lid: May. 10s 9d. Spot trader Quiet. Australian, ex ship, 56s 9d. Flour. —Firm. Australian, ex store, 41s 3d. Oats.—Firmer. Peas and Beans. —Quiet. BRADFORD TOPS The market is firm, and business small. 64 s are quoted at 4s Id a lb; 60’s 3s j 7d• 56‘s. 2s lid; 50’s, 2s 3Jd; 46 s, Is 9Jd. A. and X.Z.-Sun. London Tallow M arket.— Under date ■\ii"ust 24 the London office of the Nev WMMSnftfK wy-STSSl’sK’® Jsrsai" 9d; market quiet.

COAL-MINING OUTLOOK

NEVER BEEN BRIGHTER PROSPECTS REVIEWED At no time in the history of the Dominion has the outlook of the coal industry appeared brighter. With the Government using considerably greater quantities for Railway Department requirements, and secondary industries on the increase, the industry during the last year has received a big boost. Annual imports have decreased by several thousaPs}f ,°* tons, and many mines that previously were working only part time are now running at full capacity. Despite the fact that hydro-electricity is coming into more general use, the demand for coal shows no signs of diminishing. In fact, it is increasing substantially, experience proving it to be the most economical and satisfactory power and heat producer available today. During the past three years shares in several coal companies have hardened considerably, and payments made to shareholders in the form of dvidends and other disbursements have, within the short time, gone a long way toward compensation them for tlieir original outlays. Dividends of 3 0 per cent, are frequent. In fact, few companies .in profitable circumstances pay Jess, while one Waikato Company has paid out over 30 per cent, during the period. Pukemiro heads the list of public companies. This firm paid out at the end of its last financial year a dividend at the rate of 25 per cent. One pound paid-up shares are selling to-day at £3 2s. With an authorised capital of £IOO,OOO, the last balance sheet showed a freehold property in Anzac Avenue valued at £34,915; war loan, £31,245; plant, etc., £40,000; mining lease, £2,200; sundry debtors, £18,205; Bank of New Zealand, £32,908. Jf the mine closed down to-morrow the company could continue to pay a dividend. Shares in Taupiri Collieries have also risen sharply since March, 1926, to see the ordinary shares worth from 24s 6d to 255, while fixed assets shown on the balance sheet covering freehold and leasehold land, buildings and plant, etc., in a late publication, were £119,026. The company regularly declares a dividend of 10 per cent. Waipa is another company which pays a regular dividend of 10 per cent., besides occasional other disbursements. In the South there is the Westport Coal Company, which paj-s 125 per cent. Other Southern coal companies are also in a flourishing condition and amplv repaying the original shareholders the trust placed in their prospects. The Glen Afton Collieries, the off-shoot of the; New Zealand Co-operative Dairy Company, also cannot be overlooked. A recent application for debentures in this company within a few weeks was oversubscribed. • In the above-mentioned group it is noticeable that the most successful are the ones which produce a large portion of household coal, and which are also adit mines. Such mines have no necessitate sink deep shafts into the ground or

install expensive pumping plant, but produce the coal simply by tunnelling into the seams which are in rising ground in the side of a hill. In view of these facts, therefore, considerable interest should be taken in the publication of the prospectus of the Hillside Collieries. Ltd., a company with a nominal capital of £IOO,OOO which is? being formed to acquire and develop coal-bear-ing properties near Cronadun, Westland. From the estimates of the available coal j it is calculated that the life of the mine ; should be over 60 years, with an annual j output of 50,000 tons. In view of the j economy of working, the coal being close ! to the surface and will be worked on the ■ adit system of direct drives from the j hillside, and its close proximity to the J railway, the provisional directors antici- ; pate that operations will yield profits on a, par with those of the most successful Waikato companies. The prospectus may be obtained from any licenced broker or from the company’s brokers. G. Stewart Craig, Ltd., 41 Sbortland Street, Auckland, F.O. Box IST. On page 23 can be seen a diagram of a ss-section of tin- Hillside Collieries property indicating clearly the workable nature of the seams.

SOUTHERN POTATO MARKET DULL

HOLDERS NOT SELLING (Special to THE SUN. ) CHRISTCHURCH, Friday. The seed, grain and potato market has been dull this week and some merchants feel that trading generally has not been encouraging. Tlie past 3 2 months are described as a year of little profit to Hereford Street. Potatoes were qnoted at from 100 s to 102 s 6d f.o.b. early in the week, but yesterday the price fell to 95s to 97s Gd, equal to £3 15s to the farmer. Holders are not selling at the price offered. It was thought that the Kurow would take a short shipment to Auckland, but a late rush brought the cargo up to 4,500 sacks. Seeing that tlie Katoa only carried 2,000 sacks from Lyttelton, the Auckland market should be able to consume the supplj*. The Northern market, however, is a puzzling one and refuses to accommodate the expectations of the Southern merchants. For September the market is fairly firm, and sales have been made from £5 10s to £5 12s 6d. The feeling yesterday afternoon was ragged. NGRTHERN DAIRYING (From Our Oxen Correspondent.) WHANGAREI, Thursday.* The returns of the Bay of Islands butter factory disclose that the payout for July was <321.129 lls 7d, as compared with £9OO 5s Sd for the corresponding period last year. The rate per pound for butterfat was Is 4d and Is ltd. as against Is 5d and Is Sid. The total payout so far for the 1927-28 season is £2,656 8s Sd against £1,921 6s 6d for 1926-27.

BUTTER AND CHEESE PROSPECTS BRIGHT '— AUSTRALIA BUYING Fcr both butter and cheese near future prospects appear bright. The Home market is reported firm at current quotatons, and other factors are operating in the seller’s favour. From the Auckland dairyman's point of view the season has in fact opened most auspiciously. Practically every factory in the district reports increased output. Agents of overseas merchants continue active round the province, but little actual cash business in butter is reported* sellers being prepared to risk prospects and ship their early makes, on consignment. Speaking on the question to a SUN man this morning, a leading local exporter stated that he considered factories were justified in adopting this policy, as indications all pointed to prices being maintained at the other end for some time to come. The Australian season has not yet commenced, and the Northern Hemisphere flush must be nearing an end. Thus (here should be an increased demand for the New Zealand product from the English consumer. Inquiry has also set in from the North American continent, and there is every prospect of a considerable amount of this country’s flush surplus finding an outlet there. Everything is much in the air at the present time, however, and though one or two f.o.b. sales have been reported, it will be a week or so before anything definite can be ascertained. The lateness of the Australian season and consequent shortage of supplies for the local market has reflected in favour of the New Zealander. .Frequent sales to Australia have been reported during the past week on a basis of up to Is s£d, f.o.b. This market is only temporary, however, and cannot he expected to last more than another week or so. Even at this price, which represents approximately ibUs a cwt in London, many factories have refused to deal, contending that there is better money in shipping on consignment and risking the market at Home firming even further. Prospects of the cheese market appear equally healthy. The whole situation summed up appears healthy, though there is little to give rise to the assumption that values for either cheese or butter are likely to see greatly enhanced valyes. It must be remembered that the English consumer has a limit, as has been proved before, and a substantial rise would undoubtedly react on sales and bring about another drop.

FARMING IN CANADA

COMPARISON WITH N.Z. Farming in Canada, not many years ago, was almost synonymous with pioneering, but at present, with improved load and railway systems, rural telephones, electric power and radio, the rigors of farming life in all but the most outlying communities had been greatly ameliorated. Mr. Paul Sykes, acting-Canadian Trade Commissioner, addressed the Auckland Agricultural Science Club on the subject of “Agricultural Canada” at the luncheon yesterday. One of the most outstanding features of agricultural development in Canada during recent years, according to Mr. Sykes, is the extension of the limits of plant growth by the breeding of frostresisting and early-ripening varieties. This had been most marked in the case of wheat and potatoes, and was due to investigations by the Canadian Department of Agriculture. The speaker made an interesting comparison between certain sections of Canadian production and those of New Zealand. In 1 925 Canada produced 170,000,0001 b. of butter, which was slightly more than the New Zealand average. In the same year 177,000,0001 b. of cheese were produced, being about 35,000,0001 b. more than the New Zealand average. On the other hand. Canada’s wool production in 1925 was less than one-tenth of New Zealand’s production. During 1926 Canada imported 20,00 cwt. of butter from New Zealand; approximately £200,000 worth of sausage casings; and about 1,300,0001b5. of wool. These three items made up eight-ninths of the total value of imports. In the same year, New Zealand imported from Canada farm produce, limited to canned vegetables, wheat, flour, oats and oatmeal of a total value of about £30,000, and agricultural machinery valued at about £50,000.

SOUTHERN EXCHANGES

YESTERDAY’S SALES JPress Association. Christchurch.—Commercial Bank of Australia, £27 10s (two parcels); Beath and Co., 325; Goldsbrough, Mort, 455; New Zealand Government 5 per cent, inscribed stock, 1929, £99: Kaiapoi Woollens (17s paid), Ss 9d; (pref. cum div.), 12s 6d. Dunedin.—Goldsbrough, Mort, 45s Cd; Auckland Amusement Park, 13s 9d; National Bank, £6 15s; Union Bank, £ls (two parcels).

of Aunt. £ s. 1 8 d. £ 1 s. d. 6 L Ditto (pref.) ■■ — Fnr. t Scot., and Aus. South W ales 12 0 New Zealand ... - • Ditto (10s paid) .. 2 IS 3 17 9 r 16 3 Union of Australia . insurance— 15 1 3 18 0 14 19 0 0 — 9 South British .. .. 2 IT 9 LOAN AND AGENCY— tbraham and Williams (pref.) 4 10 0 Farmers Co-op. Auctioneering: 2 14 0 Ditto. B (pref.) .. 0 15 0 14 6 (ioldsbrough, Mort. 2 4 9 Newton King (prer.) N l and Kiver Plate 1 8 0 1 6 0 V z. Guarantee Con 0 9 0 N Z. Loan & Merc. 0 0 Ditto (pref ) -- •• SO 0 0 v Auck. Farmers (B pref.) — ° 6 COAL— Renown (con.) .. .. 0 6 10 Ditto (pref.) .. .. 0 7 9 0 7 0 Ditto A. (pref.) .. 0 6 9 0 6 0 Pukeiriro — 3 Ditto (pref.) .. .. 1 4 0 :i 0 3 6 15 GAS— Auckland 1 2 6 l 3 0 Ditto, (con.) Birkenhead and 0 17 0 17 0 0 16 6 Northeote .. .. 0 — SHIPPING — Devonport Steam 1 4 6 Huddart-Parker 2 7 6 Northern Steam .. 0 14 6 0 14 0 Ditto (con.) .. .. 0 6 9 0 6 6 P. and O. (def. stlc.) 275 0 0 Union Steam (pref.) 1 0 3 — TIMBER— Kauri Timber .. .. 1 5 9 Leyland-O’Brien 1 19 0 1 15 0 National 0 15 0 Parker-Lamb .. .. 1 2 0 Taupo Totara .. .. 0 17 6 — BREWERIES— C. L. Innes (pref.) 1 0 0 N.Z. Breweries .. .. — 2 1 6 MISCELLANEOUS— Auck. Amuse. Park 0 15 0 0 13 6 A. J. Entrican .. . . 0 19 0 British Tobacco 2 16 0 Checker Taxicab .. 0 19 0 Colonial Sugar .. . . 52 0 0 Dental and Medical 0 16 0 Dominion Picture* . . 1 0 0 Ditto (pref.) .. .. 1 0 0 Electro. Zinz (pref.) 1 12 3 1 11 0 Hamilton Theatres U IS 9 Hill and Plummer.. 1 2 6 1 1 9 H.M. Arcade (pref.) 1 0 0 Kempthorne Prosser Lewis R. Eady & Son, 3 4 9 Ltd. (7 p.c. B pref) 1 1 0 Milne and Choyce .. 1 4 0 Ditto (pref.) .. .. 1 4 0 Ditto (B pref.) .. 1 4 0 Ditto (deb. stock) 1 4 0 1 3 0 N.Z. Paper Mills . 0 17 0 — V.Z. Refrigerating .. 0 14 0 — Ditto (con.) .. . . 0 7 0 — Northern Bocft & Shoe 0 IS 0 PhiUipps and Impey 1 14 0 Robinson Ice Cream 1 Sanford, Ltd .. .. 1 1 9 Ditto (pref.) .. .. 1 0 0 Taranaki Oilfields . 0 8 9 0 7 6 1 0 0 0 15 0 0 12 0 2 0 0 Whittome Stevenson 2 4 0 2 2 0 " ilsons Cement MINING— ~ 1 Alburnia 0 3 5 0 3 0 Moanataiari (pd.) . 0 2 9 0 2 0 Ditto (con.) . . .. 0 1 3 0 0 1 0 0 0 0 0 7 Kuranui 0 0 6 Lucky Shot (2s pd) 0 2 0 0 1 4 0 1 0 0 1 Maoriland (con.) .. 0 1 5 Majestic New Walotahl (4a 0 0 6 0 0 10 Paid) 0 Ditto (con.) .. .. Occidental-Una 0 0 01 0 0 71 (con.) 0 0 7* tVaihi .. 0 19 9 0 19 3 Grand June. 0 1 6 0 1 3 AUSTRALIAN— Mount Lyell .. .. debentures— Auckland Gas, 192S. 1 7 3 0 . bj per ednt 101 0 0 90 Board. 4 p.c. 85 0 Ditto, p.c.. 99 0 0 D-tto, 52 d.c.. .. 101 10 0 100 Ditto, 6 p.c Borough of Devon- — 102 0 0 100 Mount Eden. 4S . . . . 92 0 0 95 0 0 9 1 3 7 Glaxo .. 88 L0 0 GOVT, bonds— ar Loan, 1930, 41 97 0 Ditto, 1938, 4> p.c. Pjtto, 1939, li n e. 96 10 0 96 2 6 0 96 2 6 Ditto, 1936, 5i P.C. 100 0 0 inscribed STOCK.— "AfLoan, 1938, 41 96 10 0 96 0 0 S tto, 1939. 41 p.c. 96 0 u >ttO, 1933, SJ p.c. 100 15 0 100 5 0

Consols, 2i per cent. .. 54 15 d. 0 Si. d. British 3i \Var Loan .. British 5 War Loan . . 101 15 Conversion Loan, 3$ . . 76 10 0 Com*wealth, 52, 1922-27 98 Com’wealth, 6, 1931-41 102 0 \ ictorian, 3, 1929 .. .. 71 17 Victorian, 32 1929-49 . 78 0 Victorian, 52, 1930-40 . 102 7 6 Victorian, 5, 1932-42 . 99 15 0 Victorian, 4$. 1940-60 . 95 0 0 5 0* N.S.W., 4, 1933 .. .. 94 0 0 N.S.W., 3, 1935 76 0 0 N.S.W., 32, 1930-50 .. 86 6 N.S.W., 53, 1922-32 .. 101 15 0 2 6* N.S.W.. 62, 1930-40 .. 102 17 6 11 3* N.S.W., 6, 1930-40 .. .. 102 lb 0 Queensland, 32, 1930 . 95 7 6 ►Same. Queensland, 3, 1922-47 72 5 0 15 Of Queensland, 6, 1930-40 102 o 0 New Zealand, 4, 1929 99 0 0 New Zealand, 3J. 1940 86 15 0 3 9* New Zealand, 3, 194J5 . . 78 10 0 5 0t New Zealand, 6, 1936-51 107 0 0 6 3* S. Australia, 32, 1939 87 0 0 37 r>t S. Aus. 3, 1916 or after 61 0 0 Same. S. Australia, 62, 1930-40 103 6 2 6t Tasmania, 31, 1920-40 83 15 0 15 0* Tasmania, 3, 1920-40 . 78 0 0 35 0| Tasmania. 62, 1930-40 103 5 0 W. Aus., 32, 1929-35 .. 89 0 0 10 0* W. Australia, 3. 1915-35 85 10 0 10 Of W. Australia, 6, 1930-40 101 0 0 20 0*