FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 425, 6 August 1928, Page 12

FINANCE & MARKETS

Banking Section Quiet

FIRM TONE IN AGENCY SCRIP LITTLE business was recorded on ’Change this morning. The banking section was particularly quiet.

Several banking shares received no support this morning. Commercials are steadily firm, with sellers at 30s 3d, supported by buyers at 29s lOd. Sellers of X.Z.’s advanced to 00s 6d, with buyers in at 60s. Insurance scrip remains very firm and sellers are hard to locate. More interest is being taken in the loan and agency section, and the market for shares in concerns dealing with the farming community has an upward tendency. Buyers of Newton King preference scrip improved 6d

this morning. The market for North Auckland Farmers* Co-op. shares also has a rising tendency. Wellington and Mosgiel Woollens continue very firm. Only three companies in the mining section command much attention. Moanataiaris are very weak, and sellers at Is 6d can only find support from buyers at Bd.

Business at mid-day.—On ’Change: Sanford, Ltd. (ord.), 19s; Wilsons Cement. 38s. Reported: N.Z. Ins. Stock, 1938, 4 h per cent., £99.

TO-DAY’S QUOTATIONS

SOUTHERN EXCHANGES

SATURDAY’S SALES r Press Association. Wellington. —Bank of New Zealand, 60* 3d (two parcels); Wellington Woollen. £6 11s. Christchurch. —Australian Bank of Commerce, 33s lid; English, Scottish, and .Australian Bank, £8 10s; Union Bank of Australia, £ls (three parcels); National Insurance, ISs, Goldsbrough, Mort, 50s 6d; Mahakipawa, 3s 3d (four parcels). Dunedin. —National Insurance, 16s; New Zealand Government 5* per cent. War Loan, inscribed stock, 1933, £lOl 2s 6d.

LONDON MEAT MARKET

SMITHFIELD PRICES Under date August 3, the London office of the New Zealand Meat Producers* Board cabled the following resume of Smithfield delivered prices for the week ended at that date: — New Zealand wethers and maidens.— Canterbury quality, selected brands, 561 b and under. 7 3-Sd a lb; 571 b to 641 b, 7*d; 651 b to 721 b. 7d: other brands, 561 b and under, 7 l-8d; 651 b to 721 b, 6*d. New Zealand ewes.—64lb and under, 5 5-Sd a lb.

New Zealand lambs.—Canterbury quality: 361 b and under, 10Jd a lb; 371 b to 421 b, 9 7-Sd; 431 b to 501 b, 9id; seconds, 9 7-8 d: selected brands, 361 b and under, 10id: 371 b to 421 b, 93d. Other brands, Ist quality, 361 b and under, 9 7-8 d; 371 b to 421 b, 9 5-8 d: second quality, 301 b to 321 b average, lOd. New Zealand beef.—Ox fores, 4d a lb; hinds, 6 1-8; cow hinds, s£d. Argentine chilled beef. —Ox fores, 4d a lb: hinds, 7=£d. Frozen pork.—Porkers, 601 b to 801 b, 7£d; 811 b to 991 b, 7d; 1001 b to 1201 b, 7d; baconers, 1211 b to 1801 b, 7*d. Lamb.—Market firm. Consumption is improving owing to «00l weather. Mutton.—Market very firm; better prices. Beef.—Market firm with good demand. LONDON MARKETS FROZEN MEAT VALUES (United P.A. — By Telegraph — Copyright) (Australian and. N.Z. Press Association) LONDON, Saturday. Sheep. Canterbury, medium 7 id, heavy 7d ; North Island, medium 7 1 -B*d ; New Zealand ewes, 5 7-8 d: Australian ewes, 53d: Argentine, light GJd. medium 6d. heavy 53d. Lambs.—Canterbury, medium 9 7-Sd, seconds 9 7-8 d; North Island firsts, medium, 9 5-Sd. Frozen Beef.—New Zealand, fores 4d, hinds 6 1-Sd ; Australian, fores 3 7-Sd, hinds 53d. Chilled Beef.—Argentine, fores 4d, hinds 7Jd: Uruguay, fores 3£d, hinds Od. Others unchanged. The superintendent of Smithfield market says the butchers are alarm at the shortage of meat from the Argentine and Australia. July arrivals were 2,017 tons below those of July, 1927. The recent heat wave reduced the demand to a minimum or prices would have reached high levels.

COTTON, RUBBER, HEMP, ETC. (Last week’s prices in parentheses.) Cotton.—September delivery. 10.40 d (11.09 d, August) a lb. Rubber.—Para. 113 d (Hid) a lb; plantation and smoked, 9 3-Sd (9 7-16 d). Jute.—New crop, August-September shipments, f 37 2s 6d (£37 12s 6d) a ton. Hemp.—July-September shipments, £3O . (£3O ios) a ton. < opra. August-September shipments, ■ 15a > a tom ■ (£2B 58) a ton. I iurpentin^—42s Od (435) a cwt.

BUTTER AND CHEESE

OFFICIAL MARKET REPORT Under date August 3, the London office of the New Zealand Dairy Produce Board cabled the following market report. Last week’s prices are given in parentheses:— Butter * Zealand, salted 180 s to 184 s (ISOs to 1.84); unsalted, 186 s to 190 s (186 s to 190 s); deliveries this week, 730 tons; in store this week, 5,650 tons. ustralian ' finest salted 168 sto 172 s (168 s to 1745); unsalted 172 s to 176 s (176 s to 178 s). Argentine, finest unsalted 170 s to 174 s (168 s to 170 s). Irish creamery, salted 174 sto 176 s (174 s to 1765); unsalted 178 s to 180 s (178 s to 180 s). Danish, 182 s spot, 176 s f.o.b. (182 s to 184 s and 173 s to 1755). Dutch, creamery, unsalted, 176 s to 180 s (178 s to 182 s). Esthonian, salted 170 s to 172 s (170 s to 1725); unsalted 172 s to 174 s (172 s to 1745). Latvian, salted 168 s to 172 s (168 s to 1725); unsalted 170 s to 172 s (172 s to 1745). Siberian, 156 s to 158 s (156 s to 160 s). Ukrainian, 164 s to 166 s (164 s to 1665). Polish, 150 s to 154 s (not quoted). Lithuanian, 156 s to 164 s (158 s to 1645). French baskets, salted and unsalted, 150 s to 160 s (146 s to 160 s). The market is steady, and retail prices are unchanged. The estimated stocks of all butters in store in the United Kingdom at August 1 were 14,500 tons, compared with 17,500 tons at this time last year. Cheese New Zealand, white, Ills to 112 s; coloured, 110 s to Ills to 112 s (109 s to 110 s). Canadian, white and coloured, 109 s to 110 s (108 s to 110 s); exceptional, 112 s. English, finest farmers’, 126 s to 130 s. The market is firm, and retail prices are unchanged. Merchants’ Reports The Amalgamated Dairies, Ltd., reports receipts of the following cablegram from its London office, sent under date August 4: Butter—Market closed steadier at LS2s to 184 s for finest. Our quotation unchanged at 186 s for Anchor. Little business owing to holidays. Anticipate better market next week. Danish lS2s on spot, 175 s f.o.b. Deliveries of New Zealand, 72S tons; in stock, 5,642 tons. Estimated stock in public stores at the end of July, 16,600 tons of all butters, compared with 17,350 tons last year. Retail prices are unchanged. Cheese —110 s to Ills and tip to 112 s for white. Canadian, 109 sto 110 son spot, 109 s c.i.f. Estimated stocks in United Kingdom on August 1: New Zealand and Australian, 68,650 crates; Canadian, 155,200 boxes; compared with 95,250 crates and 63,100 boxes last year. Retail prices are unchanged. RANGITAIKI DAIRY COY. Substantial increase in production is shown in the annual report of the Rangitaiki Plains Dairy Company, Ltd., Edgecumbe. The amount of butter made last season totalled 1,618 tons, compared with 1,390 tons during the. previous season. Including the bonus paid out, suppliers have received in cash 17id a lb for superfine butter-fat over the whole season, and when the final payment has been made and cream cartage, expenses of veterinary department and dividend ;idd°d, they will have received IS.OSd a lb of butter-fat over all grades. The directors recommend a dividend at the rate of 6 per cent, on all capital paid up at June 30, 1928. CALCUTTA LINSEED MARKET Under date August 2 Landale and Clark, Cnleutta, cabled the Department of Agriculture as follows: “We quote £l6 15s for linseed a ton net, <*. and f. Sydney, for immediate ship- j rnent; market quiet.”

A SOUND INVESTMENT

COMMERCIAL BANK SHARES A DECADE OF PROGRESS BY NOON CALL August 6. As a safe and attractive proposition for the investor willing to take a long view. Commercial Bank of Australia shares appear well worthy of consideration. The report and balance-sheet released last week show progress for the year ended June 30, 1928, consistent with that recorded over the past decade. Net profits amounting to £100,773 were recorded for the year ended June, 1918. Since then the annual figures have shown a steady increase, the latest returns showing net profits at £355,020. Reserves, as a .result of annual transfers from profits over and above divdend requirements, and premium on new share issues, have increased from £42,209 in 1922, to j £1,600,000 at the date of the last bal- ! ance-sheet. ! Over this period the shareholders ; who have been able to take up new issues have benefited considerably. The bank has made no less than seven new issues of ordinary shares during the past eight eyars, and further issues are pending. At a special meeting of shareholders held in December, 1926, the directors were authorised to increase the bank’s capital to £ 5,000,000 by the creation of 2,000,000 additional ordinary shares of 10s each. Of these only 1,000,000 have so far been issued, but further issues are certain to be made as the expansion of business warrants the same. How Strong Holders Have Fared The position of the holder of, say, 500 ordinary shares in January of 192 3, who was able to take up the new issues as they came along, is a particularly attractive one, and indicative of the attraction banking scrip has to the investor able to take a long view. The investor’s holding would now amount to 1,680 ordinary shares, which came to him at a total cost of £1,980 (that is, allowing that the original parcel was bought in at the ruling price in January, 1923, of 325). As the middle price for the sciV> to-day is approximately 30s, this represents an ?)ppreciation of approximately £540. In addition he has a .ready market for his scrip and is in receipt of steady dividends. Prospects on Present Market On the present market the Commercial Bank scrip compares very favourably with that of other banking concerns. Working on a conservative policy that is bringing about a gradual and healthy expansion of business throughout Australia and New Zealand (the bank, with 320 branches, exclusive of agencies, stands fourth, in this connection, on the list of banking institutions operating in the Commonwealth and New Zealand), there appears no indication that the market for the scrip will suffer as a result of falling profits in the near future. Indications are all the other way. The management is progressive and enterprising, and everything points to the bank having an abundantly prosperous time ahead, with shareholders benefitting as a result.

As a safe proposition for the investor willing to be satisfied with comparatively low returns for the present, the scrip certainly seems worthy of consideration. On the present middle price of approximately 30s the return is £5 per cent.

GOVERNMENT INSURANCE

WORK OF LIFE OFFICE ALL INVESTMENTS IN N.Z. The annual report of the GovernH2 en * J. nsurance Commissioner, Mr. A. t. Allison, discloses a position which is very gratifying to policy-holders. the new business effected dui\ing tne year comprises 5,555 policies, for assur? totalling £ 1,791,845, bringing the total business now in force, including bonuses, to well over £21,000,000. Notwithstanding that a very stringent vnin ft'on basis has been adopted* In oraTr to keep the department in the safest f ° sslbl ? position consistent with the beeVT’S °S present policy-holders, it has been found possible to diyide by way of bonus a record surplus. y almtted? h p?o U dTm t r°r P^s 90 ' 500 has been amounting 1^ to £305 bonuses and S cfose eS a U tton«on C 7o n th Cal ' ma the departml7t*s 0n fu t n O ds the theTe eS^ s eri b t ee o n f a material reduction in VclU. c nas been an An a i S „ a d t i iS £7 tory / ate of intereTearned by the" department opportunities for thrift and frn- ™o\ Z^ rj ' s provision for dependents, fa?t tiSf "l 0 Wooo 7° ePt l° n of the office ovej fnd’dekth claims 66611 Paid in Purity T. h ? ™ ost important event in the vear’s has be . Pn the inauguration of annual bonuses in lieu of the triennial division heretofore in operation. The department’s assets now amount to over £7,500,°00, which are wholly invested in the Dominion, thus assisting in its development to a material extent. DAIRY CATTLE SALES The New Zealand Doan and Mercantile Agency Co., Dtd., Hamilton, reports:— We held a clearing sale on Friday last at Puketaha, on account of Wm. Bolton, when there was a good attendance of buyers, and steady competition ruled throughout. Best Jersey cows made from £ll 10s to £ls 10s; others, £7 10s to £lO ss; weaner pigs and slips, 10s 6d to 17s 6d; farm mare, £2l.

At L. R Caley’s sale at Te Mawhai on Friday last, dairy cows realised £ls to £2l for those at profit; others, £8 to £l4.

STATE FIRE OFFICE

HEALTHY YEAR RECORDED DEPRESSION AFFECTS PREMIUMS Although affected by the general trade depression, the State Fire Insurance Ofnce, the annual report of which was presented to Parliament late last week. secured its full measure of public support during 1927. In the report is recorded (1) an increase of over £IO.OOO in premium income on a lower average rate over the whole of the business than for 1926, (2) a reduced working-expense ratio, and (3) an underwriting profit of 5.06 per cent, after maintaining a rebate to policyholders of 12J per cent. Net premiums during the year reached £207,610 and other receipts £35,554. The surplus for the year after paying the rebate was £35,883. Reserves and funds at the end of 1927 were shown to hold £670.061, and the total assets were listed at £707, 526. Claims for 1927 were substantially above those of the previous year both in amount of actual losses incurred and in ratio to premium income. While the actual causes of the majority of fires remain obscure, it would seem that the economic position as an indirect cause is very much more important than is generally suspected. Exclusive of taxes and Fire Board levies, the ratio of working expenses to premium income for 1927 was 24.23 per cent., as against 25.35 per cent, for 1926, and is well below the Dominion average for all insurance offices. Taxes and Fire Board levies absorbed 9.08 per cent., as against 10.31 per cent, for 1926. NEW ZEALAND’S IMPORTS BIG DECLINE SHOWN A big decline is shown in the imports into New Zealand over the past three years. Excluding specie, the figures for the first six months of each of four years compare as under: — Half-year to June 30: £ 1925 25,015,285 1926 24,715,080 1927 22,200,704 1928 . .. .. 20.902,526 Compared with last year, there was a decrease of £1,298,278, but compared with 1925 the shrinkage amounts to £4,112,759. The imports are probably as low as they could reasonably be, and there should now follow a steady increase. Taking the aggregates of the different groups, the position is as under:— 1928 1927 £ £ Soft goods .. .. 4.262,751 4,355,238 Hardware .. .. 2,776,029 3,481,849 Foodstuffs . . . . 1,570,563 1,674,711 Beverages . . . . 901,717 872,535 Miscellaneous . . G,957,853 7,652,085 Other Goods . . . . 4,433.613 4.164.286 20,902,526 22,200,704 Compared with 1925, the decrease in most lines was moderate, except in the miscellaneous section, which showed a drop of £2,^537,415. The number of motor vehicles imported during the first half of this year was 6,313, against 6,857 in the first half of last year, and 13,449 in the first six months of 1926; thus the imports of motor-vehicles have declined by over 50 per cent, in two years. Comparing values, the figures are £984,844, against £1.071,817 last year, and £2,188,181 in 1926. Although there was an increase in the quantity of motor-spirit imported, there was a drop in the value as compared with last year. The quantity imported was 28,305,341 gallons, against 23,485,051, and the value £860,874, against £1.143,510.

The import of whisky showed a decline, both in quantity and in value, the six months’ figures being 190,339 gallons, against 247,944 gallons, and the value £217,859, against £287,399. Tea, on the other hand, showed increases in both volume and value, the imports totalling 5,983,8811 b, against 5,172,2521 b, and the value £494,961, against £399,545.

It is pleasing to note a substantial increase in dairy machinery, the value of the imports for the six months being £85.561, against £43,507; there was a decline in agricultural machinery, the figures being £59,370, against £72,445, and in electrical machinery £871,542, against £1,123,962.

Tobacco imports increased from from 1,597,2211 b, to 1,647,7921 b, but cigarettes declneid from 752,6571 b to 665,9891 b. Although there was an increase in the quantity of tobacco imported, there was a decrease in value from £451,308 to £362,618.

AUSTRALIAN YELLOW CABS

NO DIVIDEND THIS YEAR A large decrease in the revenue of Yellow Cabs of Australia, Ltd., for the year ended June 30 is attributed by the directors to depressed business conditions in Melbourne and Sydney. All forms of passenger transport have been affected, but the loss has been most marked in the taxicab business, and has been accentuated by the excessive number of cabs on the streets of both cities. The company’s gross profit, after charging all operating, garage, and administrative expenses, and providing for taxation, etc., shows a drop of £23,055, the total for the year being £98,194, against £121,249 for 1926-27. Provision for depreciation on cabs, cars, trucks, taximeters and garage and workshop equipment is £74,023 (against £80,164 for the previous year), and net profit is left at £24,171, compared with £41,085 for the preceding 12 months. The company’s fleet in Melbourne and Sydney is 502 cabs.

Bridge costing Interest and sinking fund at 7 per cent (the Loans Board requires 2 per cent sinking fund even on concrete roads) per annum Maintenance, etc., IS per cent Neglecting all other charges such as upkeep of causeways or interest on money paid for extinguishing riparian rights or costs to boroughs in remodelling their main traffic route . . Per diem cost REVENUE SIDE Actual traffic average, 388 vehicles at 10d toll return trip, per diem .. 5,000 passengers at twopence toll .. (The committee estimates 10,000, despite Mr. Blampied’s frank admission that the people of Devonport and Birkenhead would not use the bridge; even 5,000 is in excess of the whole present traffic). Total daily income If bridge cost Even if we allow an income of £6B a day instead of £SB Daily deficit Annual deficit, to be made up by rate

Closing Quotations at to -day’s m Sellers. Buyers £. d. £ d HANKSBank of Australasia 3 1 i: 6 Com. Bank of Aust. 1 10 !0 National of X.Z. of Australasia (con.) New South Wales . . 10 New Zealand 6 Ditto. D Wort. <2u* paid) 1 6 Union of Australia . 5 1 6 1 4 19 6 INSURANCE— National o i *; •-> 0 9 New Zealand 0 South British . . . . 0 Standard — 3 4 6 LOAN AND AGENCY — Abraham & Williams (pref.) — 4 6 Farmers - Co-op Auetioneering 3 n 0 12 0 Ditto A (pref. > 1G 3 Ditto B (prei.) 0 3 5 Goldsbrough, Mort 11 Newton King (pref. > 6 6 6 N.Z. & River Plate N.Z. Guar. Corp. (ord.) 0 S 9 N.Z. Loan and Merc. 307 0 0 Ditto (pref.) . . . . SO 0 0 North Auck. Farmers' ( 'o-op. (A pref. > . . — 32 0 Ditto (B pref. > . . — 0 8 0 COAL— Hikurangi 0 G 3 0 6 0 Ditto (pref.) . . . . — Ditto (A pref.) 0 9 <5 0 8 6 Pukemiro 8 6 Taupiri 1 « Ditto (pref.) .. . . 1 0 Waipa 0 14 6 estport-Stoekton. 0 3 11 0 6 Ditto (pref.) . . . . — 0 4 1 GAS— Auckland 3 2 6 1 2 4 Ditto (con.) .. .. 0 1/ 0 0 16 5 SHIPPING— Devonport Steam . . 1 4 6 1 3 3 Huddart-Parkm 2 8 Northern Steam 0 14 0 Ditto (con.) .. .. 0 0 P. & O. (def. stk.). 240 0 0 0 0 Union Steam (pref.) — 1 0 0 TIMBERBartholomew 0 15 0 Leyland-O’Brien 1 13 0 1 10 6 WOOLLEN— Kaiapoi 0 lL 9 o 10 6 Ditto (con. 4 . . . . 0 2 3 Ditto (pref.) .. .. 0 14 f> Mosgiel T 0 0 0 Wellington — 6 9 0 Ditto (pref.) .. .. — 6 11 0 BREWERIES— C. L. Innes (pref.) 0 18 0 N.Z. Breweries .. . . — 2 5 0 MISCELLANEOUS— Auckland Amusement Park .. .. 0 7 0 British Tobacco 2 3 0 2 2 3 Bycroft, Limited 1 15 0 3 10 3 Burns, Philp — 5 0 Checker Taxicab .. — 0 5 0

day call were: — Colonial Sugar (Australia) . . . . 60 0 58 0 Dominion Pictures. 1 Ditto (pref.) .. .. 1 3 0 Gear Meat 0 0 Grey and Menzies . . 0 11 0 9 Hamilton Theatres . 0 17 Hayward’s Pictures 1 0 0 19 6 Henry Jones Co-op. 1 16 9 Hill and Plummer . 1 1 9 H.M. Arcade Theatre (pref.) 1 ft 6 Se ler s. e uy K e nip tliorne-Prosser 10 6 3 8 6 Milne and Choyce 1 4 6 Ditto (pref.) . . . . 1 4 6 Ditto (B pref.) 1 4 6 Ditto (deb stock) 1 4 0 National Pictures ft 13 ft Farmers’ Fertiliser 4 8 4 6 X.Z. Paper Mills 17 ft ft 15 Morris Hedstrom . . 1 1 1 ft X.Z. Refrier 0 18 0 Northern Boot 0 1 3 0 Robinson Ice Cream 1 0 1 3 Sanford. Ltd 0 19 6 0 18 Ditto (pref.) . . . . 1 ft Sharland and Go. l 0 ft 19 6 Taranaki Oilfields . . 0 9 ft X Tonson Garlick 0 1 2 0 Union Oil ...... 3 6 0 • Whittome Stevenson 10 0 Wilsons Cement 1 18 6 1 17 9 MINING— Moanataiari (paid) . 0 1 c, 0 0 s Golden Age (paid) 0 0 1 Kawarau 0 New Waiotahi (con.) 0 0 6 Occidental Una, (con.) 0 0 6 Ohinemuri (ord.) 0 0 0 Ditto (pref.) . . . . 0 6 0 6 Waihi ft 13 n 1" Waihi Grand June. 0 1 0 1 Mount Lyel! .. .. 1 16 0 1 15 3 DEBENTURES— Auckland Gas, 1935, 62 per cent 103 0 0 102 Auckland Harbour Board, 4 per cent. 89 Ditto, 5£ p.c. 95 10 0 Ditto, 5i p.c. . . 99 10 0 City of Auckland, 1940, oi per cent 95 10 0 Ditto, 1943, 51 p.c. 10 Auckland Pow. Bd. 51 per cent 99 0 Borough of Devonport, 6 p.c 100 0 0 Borough of Mt. Eden, Ditto, 6 p.c 102 0 Borough of Hamilton 6 no 100 0 ft N.Z. Breweries . . . . 1 4 0 1 Glaxo — 90 0 0 GOVERNMENT BONDS— War Loan, 1930, 4k 98 7 Ditto, 1938, 4i p.c. 98 Ditto, 1939, 4£ p.c. Ditto. 1941, 42 P.c. Ditto 1936, 52 p.c. — 101 0 0 INSCRIBED STOCKWar Loan. 1938, 42 Ditto. 1939, 42 p.c. 98 Ditto, 1933, 51 p.c. L01 5 0 Ditto, 1936, 52 p.c. Ditto, 1933, 5* p.c. — 99 0 0

£ 1,000,000 1,500,000 £ 2,000,000 70,000 15,000 105,000 22,500 140,000 30,000 85,000 127,500 349 170,000 466 £16 £41 3s 4d. 13s 4d £57 16s 8d. 1,000,000 1,500,000 2,000,000 165 60,225 281 90,337 398 120,450