FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 775, 23 September 1929, Page 10

FINANCE & MARKETS

HIRE-PURCHASE SYSTEM ENGLISH COMPANY’S RESULTS LOSSES LESS THAN ONE PER CENT. Tho United Dominions Trust, one of tho best managed of the London companies that act as banking: houses in providing credit for financing hirepurchase trading, has had an interesting experience of how comfortably, as well as profitably, such business can be clone. The trust specialises in the granting ©f credit facilities to the engineering, motoring and allied trades. Its losses have never been more than fractional, fend last year, when the volume of its business increased by 34.3 per cent., the amount written off for bad and doubtful debts was less than one-tenth ©f 1 per cent. Net earnings from the year’s business amounted to €64.000, of which .€30,000 was distributed in dividend of 15 per cent, and £25,000 added to reserve. In the course of the year bills wore discounted representing an aggregate value of £3,499,000. LARGE LIQUID ASSETS Established only a decade ago, and With its capital still limited to £250,000, the company has accumulated assets amounting to £2,471.000, practically the whole of which are kept in liquid form. Principal liabilities include £1,515,938 due to bankers and €449,084 on current deposit and other accounts. In a speech at the annual meeting of the company’s shareholders, the managing director, Mr. J. Gibson Jarvie, discussed the business in terms intended to be an answer to current criticisms of hire-purchase finance. “In my opinion,” he said, “the organising and granting of credit for extended periods ‘of time under hire-purchase contracts or otherwise is not only an integral part of modern banking, but is essential to the upbuilding and maintaining of our commercial and industrial structure.

‘Consumer credit is merely organised credit for distribution, and without it wo cannot produce economically because the means for taking the goods from the shelves when produced will be inadequate.” AID TO PRODUCTION

He gave the following short summary of the objects of the United Dominions Trust: “In financing the distribution of British merchandise, to do our part toward quantity production, with consequently lower production costs and prices; to assist in the creation of an exportable surplus at competitive prices; to enable people to acquire and use goods while they are paying for them; to make it possible for any sound concern from a small factory or shop to the largest industrial undertaking to install modern up-to-date equipment which in many cases.may pay for itself through its use, and so to assist in making British productive capacity thoroughly efficient through modernisation; to grant to British people those amenities to which the soundness of their credit entires them: in a word, to balance production credit with organised credit for distribution, to harness credit to our industrial, commercial and social needs.”, LONDON MARKET REPORTS (Australian and y.Z. Press Association) LONDON, Saturday. Sheep.—Canterbury, 6 5-8 d; medium, 6 id; North Island, medium, 6d; New Zealand, ewes, 4 5-Bd. Lambs. —Canterbury, light, S 7-Sd; medium, Sid; seconds, 72d; other selecteds, light, S2d; medium, S l-8d; North Island firsts, light, 8 3-8 d; seconds, Bd. Frozen Beef.—Australian hinds, Sid. Chilled Beef.—Argentine, fores, 4?d; hinds, 7 7-Bd. Others unchanged. COTTON, RUBBER, HEMP, ETC. (Last week's prices in parentheses.) Cotton.—October delivery, 9.95 d <10.02d) a lb. Rubber. —Para, 10 3-8 d (10 3-Sd) a lb.; plantation and smoked, 10 5-16 d (lOId). Jute. —September and October shipments, £3l (£3l 10s) a ton. Hemp.—None offering. Copra.—September and October shipments, £23 (€23 ss); plantation Kabaul. £23 os (£23 2s 6d). Linseed Oil. — £46 (£46) a ton. Turpentine.—44s (45s 3d) a cwt. WAIRARAPA FARMERS’ PAYMENT OF DIVIDEND ARREARS After making provision for bad and doubtful debts, depreciation and rebate on shareholders’ purchases, the SBth annual report and balance-sheet of the Wairarapa Farmers’ Co-operative Association shows a net profit for the year ended July 31, .of £18,511. The company lias a paid-up capital of £285.099. The sum of £I,OOO is being transferred to taxation reserve account, and the balance. £17,511, carried forward The accounts show a contingent liability of £15,000, being cumulative preference dividend to the year 1928 (July 31). While any portion of this remains unpaid, the company cannot pay out anything to the holders of the ordinaries. The board considers It advisable to resume payment of the dividend on ordinary shares as early as possible, however, and it is proposed to ask preference shareholders to accept payment of arrears over a period of six years. Half per cent., in addition to the required 3 per cent.. jvlJl be paid out half-yearly, commencing from January next. OHAUPO STOCK SALE Dalgety and Co., Ltd., Hamilton, report having held their fortnight sale on Friday at the Ohaupo yards. A full yarding of cattle was practically all sold at late rates. Best fat cows made to £l4 2s; heavy fat cows, £lO 17s f>d to £l3 17s; light-weight fat cows, £8 16s to £9 15s: fat heifers, £S 10s to £lO 17s 6d; light fat heifers, £7 5s to £$ '..s 6d; forward conditioned cows, £6 5s to £7 7s 6d; store cows, £4 10s to £6; yearling Jersey-cross heifers, to £5 17s ♦■d; small ditto, £3 Is to £4 7s Gd; yearling Jersey bulls, £lO to £l4 14s; medium dairy cows. €lO to £ll ss; backward cows, £7 10s to £9 ss; Shorthorn heifers, £9 15s to £ll ss; small and backward, £8 8s to £9 ss; prime fat wethers, 44s 6d; fat two-tooth wethers, 345. BUTTER AND CHEESE Merchants* report receipt of overseas cablegrams as follow: A. 11. Turnbull and Co., from W. Weddel and Co., London, under date September 20;—Butter, Banish 196 s to 20os, New Zealand unsalted 176 s to 3 82s, salted 176 s to lS2s; market firm. Cheese, New Zealand, 935; market firm. Amalgamated Dairies, Ltd., from its London office, under date September 21: —Butter prices unchanged, 184 s; market quiet. Delivery of New Zealand, 599 tons; in stock, 6.522 tons. Retail prices unchanged. Cheese, slightly better demand; New* Zealand, white and coloured. 93s up to 945; Canadian, white 92s to 935. coloured 93s to 94s on spot. 94s to 95s c.i.f. Retail unchanged.

FRUIT CASE TIMBER HEAVY IMPORTATIONS COMMISSION OF INQUIRY THE SUN'S Parliamentary Reporter WELLINGTON, Sunday. An inquiry to ascertain the difficulties which appear to prevent fruit cases made of New Zealand-grown timber competing against imported cases is to be opened shortly by the Industries and Commerce Committee of the House of Representatives, and those desiring to give evidence before the committee are being invited to submit their names. The Commissioner of State Forests, the Hon. W. B. Taverner, has for some months been interesting himself in improving the position of the sawmilling industry generally, and has been in close touch with the Minister of Industries and Commerce, the Hon. J. G. Cobbe, and with .representatives of the sawmillers, timber-workers, and Government departments concerned, with the idea of reaching the root causes of disabilities under which the sawmilling industry is labouring. One of the most striking facts disclosed was that fruit cases, which are a considerable item, can be imported at a cheaper rate and of a higher quality than can apparently be produced locally. GROCERS’ EXHIBITION SPLENDID EMPIRE PRODUCE DISPLAYS NEW ZEALAND’S ENTRY (Australian and N.Z. Press Association J Reed. 9.5 a.m. LONDON, Saturday. There was a fine display of Empire produce at the Grocers’ Exhibition, which opened at Islington today. The Empire Mdft-keting Board secured space in which are shown varieties of products from all parts of the Empire. The New Zealand High Commissioner's Department is showing an attractive exhibit of butter, cheese, bacon, honey, dried milk, condensed milk, tinned tongues and canned passion fruit. As the exhibition is thronged daily with grocers from all parts of the Empire, it is expected that the demand for Australian and New Zealand products will be considerably increased. Discussing the decline in wool prices “The Economist’s” correspondent writes that consolation may be found in the fact that lower prices will be conducive to increased consumption Values are now at a really cheap and attractive level aad a return of confidenco in the basis is alone necessary. If the general public could participate in the benefits of cheap wool by being able to buy clothing at a correspondingly reasonable price tho textile industry would soon experience a big improvement. If the profitable outlet for wool cannot be found at current prices it is a poor look-out for tho colonial wool trade. LONDON MEAT MARKET SMITHFIELD QUOTATIONS Tho New Zealand Meat Producers’ Board has received the following cablegram from its London office, under date September 20, advising Smithfield delivered prices average for the week ending that date as follows. Prices for the previous week are given in parentheses:—New Zealand wethers and maidens, Canterbury quality, selected brands, 561 b and under, 0 5-8 d (BJd); 571 b to 641 b, 6Jd (6 1-Sd); 651 b to 721 b, 53d (53d.); other brands, 561 b and under, 6 l-8d (6 l-8cl); 571 b to 641 b, 6d (5 7-Kd); 651 b to 721 b, 53d (53d). Now Zealand Ewes.—64lb ana under. 4 5-8 d (41d). New Zealand Lambs.—Canterbury quality, 36ib and under, 8 7-8 d (S3d): 371 b to 421 b, Sid (S 1-Sd): 431 b to 501 b. 8d (8d); seconds, 73d (7 5-Sd); selected brands, 361 b and under, 83d (8 5-8 d); 3<lb to 421 b, 8 1-Sd (8d); other brands, •first quality, 361 b and under, 8 3-Sd (S-d); 371 b to 421 b, 73d (73d): second quality, 30/321b average, 8d (7 7-Sd). Australian Lambs.—New season’s Victorian, first quality, 361 b and under, Sid (81d); 371 b to 421 b, not quoted. Argentine Lambs.—First quality, 361 b and under, 7Jd (77>d): 371 b to 421 b, 7d (7d). Argentine Chilled fores 43d (4 5-Sd); hinds, 7 7-8 d (7 5-8 d). Australian Frozen Beef.—Ox crops over 1001 b, 4 1-Sd (4d); ox hinds, over 1601 b, 5 3-8 d (53d). New Zealand Frozen Pork.—Porkers 601 b to 801 b, Bid (Sid); Sllb to 991 b B>d 1001 b to 1201 b. Sd (Sd); baconers, 1211 b to 1801 b, Sd (81d). Lamb.—Market firm, with better trade. Mutton.—Market better for lightweight wethers and ewes. New Zealand Porker Pigs.—There is a good demand with colder weather. New Zealand Baconer Pigs.—Quiet, owing to lower prices for bacon. MINING NEWS I SH f OT —The manager reports: The second stope above No. 2 winze lis been carried along another 20 felt nr i;}® ' veek - making a total of 40 feet, and the average width of the reef is 12 inches stone l ” 8 Thi d f °? £ he face len sth of the ...T 1 }, 6 r ? ff has n °w made a iuncnears m h be he h , an Sing-wall reef, and apP,® ara , be a large body of ore for the of . tlle st °P e . Showing a high percentage ot antimony and silica. The on t£l%L e r eI ‘' as been 1? wide iso * o, f A Tl hiCl l 1S twelve belies JY 1 .. - ,^° l old has been seen during this week, but the ore looks well, and is heavily mineralised. AUCKLAND WOOL SALES Auckland sales for the 1929-30 woolselling season have been fixed for November 25, January 21, and March -8. In a list published on Saturday, the date of the January sale was inadvertently given ,as December 21. NORFOLK ISLAND POTATOES SHIPMENT NOW RELEASED (THE nuns Parliamentary Reporter) WELLINGTON, Today. According to the Hon. G. W. Forbes, Minister of Agriculture, the shipment ol Norfolk Island potatoes brought bv the Maui Pomare, which has been held up in Auckland for fear of disease, has now been released. A sample was examined at the plant reesarch station at Palmerston North and found to be in good condition.