FINANCE & MARKETS

Sun (Auckland), Volume II, Issue 596, 23 February 1929, Page 12

FINANCE & MARKETS

Firm to the Close NORTHERN STEAMS REACH PAR Bv “Noon Call.” HEALTHY trading was maintained on 'Change right to the close. The market for all the better-class securities is

y very firm. FLUCTUATIONS Movements on ’Change over the past 24 hours shown in sales when compared with the previous recorded sale are: Bank of Australasia, rise of Is 6d. Farmers’ Trading (ord.), rise of 2_d. Northern Steamship (ord.), rise of Id. Kaiapoi Woollens (ord.), rise of 6d. Nat. Bank of New Zealand, fall of 3d. * # * In the banking group. Commercials have recovered slightly from yesterday’s weaker tone, and sellers this morning asked 3d more at 29s 3d. •Asias advanced to see business at £ 15 Is 6d after the call, 3s 6d above the market in January, and Is 6d above last week’s price. New South Wales shares, which were very active a fortnight ago, are easier and nominal sellers at £sl 15s this morning were mot supported. Sellers of insurance scrip show little Snclination to meet buyers’ ideas of value. Nationals are quietly active at l€s 2d, the current price for this scrip tor th‘e past fortnight. South British buyers, improved to the new high level of 655, fai. to draw a declaration jfrom sellers. In the shipping group. Devonport Steams are lirmer, with buyers at Id above yesterday’s market not attracting sellers below 24s 4d. Northern Steams strengthened yesterday afternoon to see the ordinaries sell at par 3or the first time since the middle of September last.

In the miscellaneous group Farmers’ Trading ordinaries moved up 2d to see sales at Ss Bd. The sound position of the company and the promise of a dividend at the rate of 10 per cent, gives the scrip an undoubted attraction, and this is undoubtedly the reason for the strength of the market. On the present price, considering the dividend, the shares are slightly better buying on ’Change than over counter at the company’s office, where the new issue is being offered. When brokerage and other charges are considered, the office offers the best proposition. however. Adding the amount of the 10 per cent, dividend in which they will not participate to the new issue gives them a value of Ss 10.4 d.

The gilt-edge section is very firm, 1938 and 1929 bonds sold in fairly large parcels at par at the morning call. There is a healthy demand for all classes of securities in the section.

Business yesterday afternoon.— Union Bank of Australia, £l4 Ss 6d; Nat. Bank of New Zealand, £7 4s 9d; National Insurance, 16s 2d; Pukemiro Collieries, 67s 6d: Auckland Gas, 24s 3d; Kempthorne Prosser’s N.Z. Drug Co., 75s 6d; Northern Steam (ord.), 14s 6d; Taranaki Oils, 4s 3d; Aust. Bank of Commerce, 35s (two parcels}.; Waihi Mining, 13s 7d.

Business this morning.—Pukemiro Collieries, 67s 6d; Kaiapoi Woollens (ord.), 14s 6d ; N.Z. War Loan, 1938, 4i per cent., £IOO (two parcels); ditto, 1939, 4 £ per cent., £100; Mt. Ly#l, 42s 6d: Farmers' Trading (ord.), Ss 8d; Bank of Australasia, £ls Is 6d.

TO-DAY’S QUOTATIONS

' SOUTHERN EXCHANGES

T , YESTERDAY’S SALES Press Association Wellington. —National Insurance. 16s _d: Wellington Woollen (pref.), £7 7sE lee t roly tie Zinc (ord.), 36s 36s 6d : Auckland Gas. 24s 3d, Waihi, 13s 9d; Blenheim Oil, 60s. Christchurch. —National Bank of New Zealand. £7 4s 6d; Tooth’s Brewery, 55s 3d: ReaJh and Company, 29s lid; Dunlop Rubber, 27s 7d; Mahakipawa, Is 5d (three parcels); Union Bank of Australia. £ls 8s (two parcels); Holden’s Motors, 2Ss 9d; Kaiapoi Woollens (17s paid). 14s 6d. Dunedin. —Dominion Rubber, 34s 9d ♦ two): Mount By ell. 42s 9d; Kildare, 2s JOd; Blenheim Oil, 60s (cum rights).

MERCHANTS CONFER

STAMP DUTY ON CHEQUES

GOVERNMENT IN BUSINESS

DUNEDIN, Friday,

Delegates representing the wholesale general merchants of the Dominion met in Dunedin this week to take part in the annual cDnference. It was the most representative gathering of merchants that has ever assembled in the Dominion. Many matters of importance to the wholesale trade were under consideration.

Attention was directed to the continuation of the measure introduced during the war whereby stamp duty on cheques and receipts was increased in each instance from Id to 2d. It was pointed out that it was understood that this increase would be cancelled at the conclusion of the war, and it was particularly emphasised that this increase was a tax imposed on one section of taxpayers, that is, the trading community. It was decided to make strong representations to the Government that the time had long passed when a reversion to the old rate should be given effect to.

Taxation came under notice, particular attention being directed to the amendment to the Income Tax Act passed in 1927 which resulted in an increase in the income tax on one section of the community, approximating in many instances 100 per cent. The conference de-

cided that strong representations should be made to the Government that what Mas termed class taxation should be reviewed when next Parliament meets.

An expression of appreciation was recorded at the recent announcement of the Prime Minister that in his opinion the time had arrived when the Government should give business people more encouragement to develop their business, and that the Government should abstain from that interference which had characterised political activity in recent years.

Very great regret was expressed at the news of the death of the Chief Justice,

and the conference' passed a resolution of deep sympathy with the relatives of de-

ceased, and placed on record its sense of loss tr. the country' in the death of such a distinguished citizen.

BANKING SHARES A POPULAR INVESTMENT POPULAR CHOICE JUSTIFIED One .of the most popular investments for months past has been banking shares. In practically every instance substantial market appreciation© have taken place, and the shares meet with a steady demand on new high levels.

An interesting commentary on banking shares as a profitable investment is given by J. B. Were and Son, the well-known Melbourne sharebrokers, in their recently issued booklet on Australian and New Zealand banks. The work is well worthy of perusal by all who are able to secure a copy. This firm also-gives a short summary in their weekly report for the week ended February 8. “Investment in bank shares has been one of the most profitable channels for years past,’’ states the summary, “A mere glance at a list of prices of Australian bank shares shows that they all (with the exception of a preference stock carrying a maximum dividend of 4 per cent.) stand at considerable premiums, and although some of the capital may have been issued above its nominal value, it is evident that at the start a good proportion was provided on a par basis. The favourable market position of the shares speaks well for the financial management of the average banking institution, and it is a recognised feature that the investor who liuys bank shares usually purchases something more than the nominal amount of the shares.

“The visible and invisible reserves of the banks, in fact, are very large, and it is a trite saying that a purchaser of a bank share in the present day buys a participation in a total capital far in excess of that nominally stated.

“One of the means employed for stabilising returns is the use made of what are called the ‘invisible’ reserves. Where visible reserves are large it may be taken as a certainty that there are usually invisible reserves in the shape of the writing down of important assets on the chance of contingencies. These hidden reserves, while assisting in the operations of the banks, play a great part in equalising the dividend upon the shares, and, as a result, it is a rare occurrence for a. reduction to take place in the dividends of a leading bank, as the visible and invisible reserves act as a safeguard against fluctuations in its income.

“There is no doubt that the popularity of bank stocks in Australia is well justified. These institutions are being conducted along prudent and conservative lines, and dividends have been limited while reserves have been steadily increased, and premises and other assets written down very hard. The benefit of this policy is now being realised by present-day shareholders, who are receiving in most instances handsome dividends from their holding©.

“Taking bank shares as a whole, we may say that they still offer an attractive field for the investor, seeing that they may be bought both for an immediate moderate yield and the prospect 'of substantial benefits in the future.” MASTERTON RAM FAIR LINCOLN MAKES 110GNS. Press Association MASTERTON, Friday. The Masterton Agricultural and Pastoral Society’s ram fair was continued to-day before a large attendance of buyers. Lincolns, both studs and flocks,

met with the best sale for years, llOgns being top price for a stud Lincoln offered on account of L. R. Wilton, of Masterton. The purchaser was a local breeder, R. Donald. Lincoln flock rams brought up to 19gns. Southdown stud and flock rams also met with a satisfactory market for quality animals. Stud Southdown rams sold on account of W. J. Gimblett (Manawatu) topped the market at 122gns, being purchased by Soulter and Wilson, of Palmerston North. Another good animal sold for Ellis Brothers brought lOOgns. Southdown flocks ranged up to Signs. A few pens of Corriedales were offered, but only two lots were sold. WHEAT MOVING FREELY POSITION IN LAMBS BUSY Press Association CHRISTCHURCH, Friday. Deliveries of wheat are now being made in earnest. Offerings are considerably in excess of the buying capacity, unless growers are prepared to accept the minimum figure. There is a fair amount of purchasing at 5s 7d a bushel on trucks, this figure to 5s 8d covering values, with an increment for North Canterbury wheat. It is understood a fair quantity of “pool’’ wheat is going into store, the present prices not appealing to the board. Fowl wheat is inclined to be stronger and 5s 7d, f.0.b., is quoted. A feat Lire of the Gar tons so far offered merchants is the excellent sample, which is bright and plump, and in all cases so far grading A’s. Several big parcels have been offered, approximating in some cases 4,000 to 6,000 bushels. The demand, however, is lifeless, although there is a somewhat improved tone since early in the week. Sales have been made at 3s 4d and 3s 4id, f.0.b., s.i., for spread A Gartons, and 3s and 3s Id for B’s. Values on trucks are 2s 8d for A’s, and 2s 5d for B's. The demand for Algerians seems to have disappeared and this variety is a drag on the market at preChaff is quoted at £5 7s 6d and has been bought at £3 10s on trucks from farmers. Akaroa cocksfoot is in keen demand and some purchases have been made at Sid a lb from farmers. Ryegrass is not occupying the attention of a week or two ago, it being considered that most of the perennial has got into merchants’ hands. The current values are from 4s to 4s 6d a bushel on trucks. Reports from the South state that a good crop promises there. Italian ryegrass is quoted at 3s 6d to 3s 9d. White clover has been offering, but samples are not good. From 8d to lOd a lb is quoted to farmers. It is early yet for cowgrass offerings, but the carry-over in this seed was fairly heavy and new season’s values will be affected thereby. Up to 6d a lb is quoted farmers. The northern inquiry for seed, however, continues to be disappointing. As a rule the end of February sees a fair volume of inquiry. There is no change in potato values, although the lengthy spell of dry weather is causing a few forward sellers to take more interest. Auckland inquiry is small for March-April. but some purchasing has been done for later months at £5 15s f.0.b., s.i. TRADE IN KAURI GUM U.S.A. A BIG BUYER An improved tone in the market for some grades of kauri gum was reported to the monthly meeting of the Kauri Gum Board, held this week. Export returns for December and January last show the United States of America to be the most profitable market at the moment. The figures are:— Dec. Jan. tons tons United Kingdom .... 88 127 Canada 1 France 6 26 Germany ]4 19 Netherlands United States .. .. .. 21S 259

BUTTER MARKET STAGNANT

QUOTATIONS IRREGULAR A steady decline in the London market for New Zealand dairy produce has been noted over the past few weeks. At the moment the market is reported to be lifeless, with buyers taking little interest. To-day’s quotations for butter are still well above those at the corresponding period of last season, however, when London buyers were offering 162 sto 1645. Cheese was slightly firmer at 94s to 95 this time last year. MERCHANTS’ REPORTS Merchants report receipt of London cables as follow: Amalgamated Dames, Limited, from their London office, under date February 21:—“Butter: No official butter price meantime; market demoralised: prices irregular. Danish, 185 s, f.o.b. Cheese: White, S4s to Sss; coloured, S6s to S7s; rather more interest.”

SUN COMMERCIAL SERVICE '‘Trader” (Mount Albert): Decisions of that nature rest with the board of directors in Sydney. “Banks” (Cambridge): On another part of this page you will find an article fully covering your query. B.C.S. (Epsom): No, present holders of the scrip are not asked to pay a premium. It must be remembered, however, that the new issue does not participate in this year’s dividend. T.M. (Otahuhu): The debentures mentioned are not held in high favour on 'Change. Firstly, because some of the securities given are reported to be over-valued, and, secondly, because it is impossible to obtain a balancesheet showing the exact financial position of the company and its subsidiaries.

AUCKLAND WOOL SALE With a local record catalogue, the second Auckland sale of the 1928-29 wool selling season opens ir: the Concert Chamber of the. Town Hall this evening. The sale will start at 7.30 and continue to a late hour, to be resumed on Monday morning. A large bench of buyers is expected, representative of a wide range of buying points. Admission to the sale will be restricted to those holding tickets, obtainable from the wool-broking firms.

HIGH PRICES FOR EWES

BIG YARDING AT FEILDING Press Association FEILDING, Friday. About 25,000 sheep were yarded at the Feilding ewe fair to-day, an exceptionally heavy yarding. Older sheep were offeree first and bidding improved as the sale pro ceeded, and very few pens were passec in. Two-tooth ewes, of which there was a larger yarding than usual, met witl very keen competition. Prices for oldei ewes were about 7s to Ss a bead bettei than last year and for two-tooths 10s tc 15s better. Good mixed aged ewes sold at 31s 1c to 34s 3d: inferior, 25s 3d; good four-yeai ewes, 31s 6d to 34s Sd: inferior, 25s^lc medium. 22s 6d to* 26s 6d: good four am five-year ewes, 29s 9d to 33s sd; medium 26s to 29s 6d; inferior. 21s to 25s 6cl best pens two-tooths, £2 Ss to £3 5s 6d the latter price being for a line sold oi behalf of J. D. Hocking; bigger lines o good sheep, 40s to 455; medium two tooths, 36s to 39s Od.

Closing quotations at today's mid da; Sellers. Buyers. £ s. d. £ a. d. BANKS— Australian of Coin. 1 15 6 t 14 6 Australasia 14 19 0 Com. of Australia . 1 9 3 8 10 Ditto (pref.) .. .. 7 5 0 i om. of Sydney 17 ft Eng., Scot. & Aust. 1) 0 0 National of N.Z. . . 7 ft Nat. of Australasia 11 ft 19 ft 6 ."New South Wales • hi 15 0 New Zealand . . .. 6 Ditto, D Mort. .. 1 8 3 "Union of Aust, »• INSURANCE— 15 0 0 15 7 6 National .. .. _ 0 IK 4 0 1fi 0 New Zealand •. • • 7 6 2 ft 9 Queensland .. •• — o ft •0 South British .. .. —■ 3 5 0 LOAN AND AGENCY— Abraham and Williams (pref.) .. .. 4 7 0 Farmers’ Co-op. 15 0 Ditto (A pref.) .. 0 17 0 Goldsbrough, Mort. . J2 0 Newton King (pref.) 0 8 ft N.Z. & River Plate 1 15 0 1 13 9 N.Z. Guar Corp. . . ft 8 8 N.Z. Loan & Merc. N. Auck. Farmers' 130 0 0 125 0 0 Co-op, B (pref.).. — 0 8 0 COAD— Hikurangi (pref. - ) .. 0 8 ft Ditto (A pref.) .. 0 5 ft Pukemiro 9 0 6 6 Renown .. .. •• .. 0 18 0 0 1« 9 Ditto (pref.) .. 0 0 ft 11 Taupiri . .. * 6 ft 1 5 9 Ditto (pref.) .. .. 1 3 0 Waipa .. 0 12 6 Westport •• •« 44 .« €AS— 1 12 0 Auckland . . .. 3 4 1 Ditto (con.) .. .. 0 IS 0 ft 17 9 Thames ., . . • .... SHIPPING— 0 M 0 0 b 0 Devon port Steam ■ 1 4 4 1 4 1 Huddart-Parker — i Northern Steam 0 U S Ditto (con.) 0 ft 11 0 ft 6 Union Steam (pref.) TIMBER— “ 1 0 6 Kauri .. 0 38 0 Leyland-O'Brien 1 14 ft National .. .. .. 0 10 0 Parker-Lamb . , WOOLLEN— 0 19 0 Kaiapoi .. .. .. .. 0 14 3 Ditto (con.) .. 0 4 3 Ditto (pref.) .. .. 0 lh 9 Mosgiel . .. 7 10 0 W ellington . . .. 7 7 6 Ditto (pref.) — 7 5 0 BREWERIES— C. L. Innes (pref.) 1 0 0 N.Z. Breweries 18 0 J. Staples .. .. inSCEX.I^AJJEOUS— 2 3 0 Auck. Amuse. Park 0 4 0 Ditto (pref.) .. .. 0 IK 0 .A. J. Entriean (ord.) 0 37 ft Australian Glass 10 3 9 British Tobacco 9 6 Burns, Philp .. .. 2 7 0

call were:— Sellers. Buyers. Bycroft, Ltd 1 11 3 Checker Taxicab .. 0 s 0 Dominion Pictures . 1 1 0 Ditto (pref.) .. .. 1 1 0 Donaghy's Rope .. 1 13 0 Electrolytic Zinc (ord.) 1 16 0 Ditto (pref.) 1 17 0 Farmers’ Trading . 0 9 o 0 8 4 Ditto (A pref.) .. 0 17 0 0 16 6 Ditto (B pref.) .. 0 12 6 Fuller's Pictures 1 l n Gear Meat 3 0 Grey and Menzies . 0 10 6 Hayward’s Pictures 1 1 0 Henry Jones Co-op. 1 37 0 H.M. Arcade Theatre 10 0 Ditto (pref.) .. .. 1 1 3 Kempthorne Prosser’s 4 6 Lewis Eady (pref.) . 0 19 Milne and Choyce .. 1 6 0 Ditto (pref.) .. .. 1 6 0 Ditto B (pref.) .. 1 6 0 Ditto (deb. stock) 1 6 0 N.Z. Farmers’ Fert. 1 1 0 1 0 N.Z. Refrigerating (con.) 0 S 0 0 7 6 Robinson Ice Cream 3 0 Sanford, Ltd 0 18 6 0 17 0 Ditto (pref.) .. .. 0 18 6 Sharland and Co. . . 1 0 4 Ditto (pref.) .. .. 1 0 6 S. R. Maxwell.. .. 4 0 Taranaki Oilfields .. 0 4 6 0 4 1 Thames Theatre 0 10 0 Union Oil .. .. .. 1 0 Wilsons Cement 2 1 0 — MINING— Alburnia (2s 6d pd.) , 0 0 5* Lucky Shot (4s pd) 0 0 0 0 9 Ditto (con.) .. .. 0 1 1 Maoriland (con.) .. 0 0 6 Occidental-Una (2s paid) 0 n 10 0 0 Ditto (con.) .. .. 0 0 b 0 0 Ohinemuri (ord.) .. 0 X n Waihi 0 13 S 0 13 6 Waihi Grand June.. 0 0 9 — Mount Lyell .. .. 2 2 9 2 2 6 DEBENTURES— Auckland Gas, 1932, 94 0 0 Ditto, 1935, 6£ p.c. 103 0 0 Auckland Harb Bd, 51 p.C 100 0 0 98 10 0 Ditto, 5£ p.c. . . . . 100 0 0 Ditto, 6 p.c 103 10 0 City of Auckland, 1940, 54 p.c 99 10 0 Ditto, 1943, 5i p.c. 100 0 0 Bor. of Devonport, 103 0 0 Ditto, 4i p.c 93 0 0 Bor. Mt. Eden, 53-. 102 0 0 Ditto, 6 p.c 3 03 10 0 Ditto. 5£ p.c 100 0 0 Bor. of Hamilton, 6 102 0 0 N.Z. Breweries 1 6 5 1 6 0 GOVERNMENT BONDS War Loan. 1930, 4i 99 10 0 Ditto, 3938, 4£ p.c. 99 12 6 Ditto, 1939, 4£ p.c. 99 Ditto, 1933, 5£ p.c. 101 0 0 Ditto, 1936, 5£ p.c. — 101 10 0 INSCRIBED STOCKWar Loan. 1938, 4£ 99 15 0 Ditto, 1939, 4£ p.c. 99 15 0 Ditto, 1933, 5J p.c. 101 5 0 Ditto, 1936, 5£ p.c. — 101 10 0