FINANCE & MARKETS

Sun (Auckland), Volume III, Issue 886, 1 February 1930, Page 12

FINANCE & MARKETS

Market on ’Change A Fresh Bearing Influence By ‘‘Noon Call.” THK announcement of an increase in the New Zealand bank rate on overdrafts acts as a further bearing influence on the investment market. For the most part, however, it was expected by those in close touch with the position. It is but a reaction of world affairs over the past 32 months, and more particularly an outward indication of the decreasing value of the Dominion’s exports as a result of lower prices for primary produce. The outlook may not appear bright at the moment, but all signs point to a turn toward better times within the next six months. At the moment investors continue rather uncertain as to how much further the market for sound stocks will fall.

Fluctuations Price movements, shown by a comparison of sales on the Auckland 'Change over the past 24 hours with the price at the time of the previous recorded sale, include:— Bank of New South Wales, fall of 15s. Christchurch Gas, fall of l^d. Commercial Bank of Australia, fall of sd. Taranaki Oil Company Progress The Taranaki Oil (N.Z.) Company reports: Gisborne Xo 2 well: Cemented off leak in BJin. diameter casing 1 yesterday: expect to resume drilling Sunday. Hikurangi Coal Company A bright future for the Hikurangi *oal Company was painted by the -liairmin of directors. Sir Edwin Mithel.son, at the 36tlx annual meeting of he company held yesterday. Sir udwin referred to the flooding of the nine in January last, and stated that Government aid had been secured to rain part of the swamp which was he biggest cause of the trouble. Considerable time had been lost in obtaining suitable pumps and installing the additional power necessary for the increased work. To finance arrangements debentures to the value of £30.000, bearing an interest rate of 10 per cent., had been issued. These were now fully subscribed, shareholders taking up £16,000 of the issue. The loss on the actual working of the mine was £18,197, plus depreciation, £2,835. The liabilities, after deducting credits were £40,437, slightly in advance of the amount when the first flooding of the mine occurred. The company now has standing orders for 1,000 tons of coal a week, and is having no difficulty in disposing of its weekly output of 1,500 tons. The directors are confident that they have sufficient power to cope with any further water trouble which may arise. • • • Business on the Auckland Market Transactions on the Auckland market c ,r er the past 24 hours included: Yesterday afternoon: —Bank of New South "Wales, £3B 10s; New Zealand War Loan, 1938, per cent., £99 7s «d; ditto, 1933, 55 per cent., £9B 15s; New Zealand Inscribed Stock, 1933, 55

TO-DAY’S QUOTATIONS

Closing quotations at today's midday call were:—

CLEVEDON SHEEP FAIR The New Zealand Loan and Mercantile Agency Co.. Ltd., reports having held its opening Clevedon sheep fair yesterday. The number of sheep penned was a record for the locality. Although, as expected, values tor all classes of breeding owes Were lower, there was a good demand, with vendors well satisfied with the results. Young ewes sold readily, two, four, and six-tooth ewes realising £1 3s to £1 8s; fresh full-mouth ewes, 19s to £1 3s 6d; sound-mouth ewes, 16s to £1; full to failing-mouth ewes, 10s to 15s 9d: inferior poor ev:es, 6s upward. There was a good demand for store lambs and wethers. Store lambs, best, 14s to 18s: others, 7s upward: store wethers, 18s to £1 4s Sd. The sheep penned all changed hands with the exception of two small lots. Prices realised for rams were also easier than last year. Southdown rams made Igns to 6Jgns; Romney rams, 3gns to Cgns. The values realised for store lambs are almost ori a par with those realised at last year’s opening fairs. CHICAGO WHEAT cd. 11 a.m. CHICAGO, Friday. ! Vheat.—March. 1 dollar 152 cents: v. 1 dollar 20 5-8 cents; July, 1 lar 225 cents.

per cent., £9B 15s; Christchurcli Gas, 26s 6d; Waihi Grand Junction, Is 3d. This morning:—Commercial Bank of Australia, 22s Id; Bank of New South Wales, £3B 10s; Ohinemuri Mining, 3s 4d. * <= * Market This Morning Any change this morning was toward lower levels. This was particularly noticeable in the banking group, where both Commercials and New South Wales were dealt with at lower prices. Insurances continue unsupported with the market showing a tendency to weaken. A slightly better tone is noted in the loan and agency section, and it is hard to see how many stocks there can go much lower. With Dalgetys, one of the soundest companies in Australia or New Zealand, offering at a price which allows a return of slightly over 7 per cent, on the last dividend payment, and Goldsbrough, Morts selling around 30s, a price which allows a return of 10 per cent, at the current dividend rate of 15 per cent., or even if the worst fears were realised and the dividend distribution was reduced to the rate of 10 per cent., a return of £6 13s 4d, it seems that the section offers good buying. Coals aro neglected. Slightly more attention is being paid to the gilt-edge section, several sales being put through yesterday afternoon at prices on the new level set by the Government’s recent issue of 55 per cent, stocks. * * * Dividends Payable Due. British Tobacco, pref., fhvvL 65 p.c m. .. Jan. 31 Union Bank—lnterim, 125 P-" p.a- Jan. 29 Auckland Gas—final, 4 p.c Feb. 4 Christchurch Gas —final, 4 p.c. .. Feb. 4 Commercial Bank of Australia—interim, ord., 15 p.c. p.a.; pref., 4 p.c.. p.a Feb. 7 N.Z. Insurance—interim, lid a share Feb. 12 Queensland Nat. Bank—quarterly, 2J p.c Feb. 13 Victoria Nyanza Sugar—final for last financial year, 5 p.c., and Interim for current year, 25 p.c Feb. 25 Broken Hill South—quarterly, 2s a share Feb. 26 Wellington Gas—final, 4 p.c. .. Feb. Electrolytic Zinc—interim, ord. and pref., 12 p.c. p.a Mar. 6 Call— Moanataiari, 2s 2d paid—2d a share Feb. 6 Occidental—3d a share Feb. 7

WAIKATO EWE PRICES Dalgety and Co.. Ltd., report having I hold its annual sheep fair at Ivauroa 1 on Thursday, when a full yarding of sheep came forward, and sold under ; fair competition. Although bujers at ! the start of the sale were cautious the , tone improved as the sale continued, and practically all the sheep yarded were sold at satisfactory prices. Good five-year ewes mad© 20s to 22s 6d. An extra good line of fiveyear ewes on account of Wm. Thomson topped the market at 24s Id; ordinary five and six-year ewes, 17s 6d to 20s; light-conditioned cully sorts, 12s 6d to 15s; four and six-tooth fresh full-mouthed ewes, 24s 6d. An extra good line of four-tooth ewes brought the satisfactory price of 31s; others, 20s to 24s 6d; good two-tooth ewes, 26s 6d to 27s 6d, a small line selling at 29s 6d; two-tooth wethers, 20s, 21s 6d to 22s 9d; four-tooth wethers. 22s 6d to 23s 6d, smaller sorts ISs to 19s Cd. Fairly well-grown ewe lambs, shorn, 13s to 35s Id, others 10s to 12s bd; shorn wether lambs, 10s to 12s 6d; mixed-sex woolly lambs, 9s 6d, 10s, to 12s C«l. A really good line of 150 wether lambs on account of .T. L. Y. Martyn topped the sale at 16s - small cully lambs ss, 6s Cd to Ss; fair twotooth Romney rams. 35gris to 4gns; two-tooth Southdown rams, sgns to Ggns; full-mouth Southdown rams, 3gns.

BANK RATE RAISED MINIMUM OF 7 PER CENT. EFFECTIVE FROM TODAY Press Association WELLINGTON, Friday. The chairman of the Associated Banks announces that on and after February 1, the following rates of interest will be paid by the banks on fixed deposits:—For any period between three and 12 months, 32 per cent.; for any period between 12 and 24 months, 4i per cent.; for 24 months, 5 per cent. The minimum overdraft rate will be increased to 7 per cent. The increase in the overdraft rate is 5 per cent. The rate of interest on deposits for three to 12 months is not altered, but there is an increase of $ per cent, for 12 to 24 months, while the rate for 24 months is increased by 5 per cent. The overdraft rate was increased in July, 1920, from 55 per cent, to 6 per cent. In January, 1921, there was a further advance to 65 per cent., and in February, 1921 to 7 per cent. The rate was maintained until January, ll when there was a reduction to 65 per cent. The 7 per cent, rate was restored in May, 1227, and remained m force until July, 1928. The discount rate was 5 per cent, below the overdraft rate until 1923, since when both rates have been the same. Concurrent with the advance in the overdraft rate in 1927, an increase of 5 per cent, in the interest rates on fixed deposits was announced. These rates were also reduced in July, 1928. NEW ZEALAND ON LONDON REVISED EXCHANGE RATES SUBSTANTIAL INCREASES The announcement yesterday that the rates of exchange between New Zealand and London had been raised did not come as a surprise to the greater number of business men, q.s events of the past month or so haye practically forecast such a turn of affairs.

Under the new schedule the rates for drafts, by which remittances are made from New Zealand in payment for imports, have been increased 10s per cent., while the rates at which the banks will buy bills on London —payments against exports—have been raised by 7s 6d per cent., as compared with the tariff introduced on December 21. The new scale is as follows: NEW ZEALAND ON LONDON

iransxer u yiem. Corresponding alterations have been made by the banks in London for exchange on New Zealand. Oil December 20 it was announced that the New Zealand rates had been raised to the Australian scale, involving the unusually large alteration of 15s in each quotation. The rates for Australia were revised again a week ago and the new scale was applied yesterday to New Zealand. Details are as follow: — LONDON OX NEW ZEALAND Buying. Selling. „ s. d. s. d. On demand .. 70 0 dis. 47 6 dis. 30 days .. .. 81 3 dis. 60 days . . .. 92 6 dis. 90 days . . .. 103 9 dis. Telegraphic transfer .... The banks in London are charging 7s 6d per cent, less for drafts and paying 10s less for bills. When the last alteration was made, on December 21, in the New Zealand exchange on London, it had the effect of placing sight bills at a premium of ss, a position that has probably never previously arisen. It is still more unlikely that the premium has ever been as high as 12s 6d. Even in the exchange crisis produced by the post-war slump, sight bills did not rise above par. The rate of telegraphic exchange, 52s Cd, is only a step below the 1921 record of 60s, the rate that ruled from January to August of that year. The selling rate for mail transfers, 40s, is probably a record. From December, 1920, to February, 1922, the rate was 37s 6d.

The present alterations are a continuation of the movement that began last July, the aggregate effect of which has been to raise the New Zealand buying rate for sight bills from 12s 6d discount to 12s Cd premium, while the premium on sight drafts has been increased by 355, and that on telegraphic transfers by 37s 6d. METAL AND PRODUCE REPORTS ON LONDON MARKET LONDON, Thursday. (Quotations on January 27 are given in parentheses.) Copper.—Spot, £72 Is 3d (£7l 11s 3d): three months, £6B 16s 10£d (£6B 3s 9d). Electrolytic Copper.—Spot, £B3 10s (£B3 ss); three months, £B4 5s (£B3 15s). Wire Bars.— £B4 5s (£B3 15s). Lead. —Spot, £2l 13s 9d (£22 12s 6d); three months, £2l 12s 6d (£22 12s 6d). Spelter.—Spot, £2O 3 s 3d (£l9 17s 6d); three months, £2O 10s (£2O 7s 6d). Tin.—Spot, £l7B 2s Cd (£l74s 7s 6d); three months, £lßl 5s (£177 17s 6d). Silver.—Standard, 20 3-Sd (20 5-Sd) an ounce; fine, 22d (22id). WHEAT AND FLOUR Wheat.—Cargoes are easier and prices are Cd to Is lower. Futures: London, January, 45s Cd a quarter; March, 41 Cd. Liverpool: March, Ss Sid per cental; May. 9s Old; July, 9s 1 7-Bd. Spot trade dull and generally easier. Australian, ex ship, 47s 3d. Flour.—Quiet and easier. Australian, ex store, 35s 6d to 35s 9d. Oats.—Quiet and irregular. Peas and Beans. —Slow. Beet Sugar.—February, 5s 9d. AMALGAMATION PLAN BOOT COMPANY’S MEETING A proposal of amalgamation with two other companies in Auckland was the question discussed at an extraordinary meeting this morning of 20 directors and shareholders of the Northern Boot and Shoe Manufacturing Company, Limited. Mr. George Winstone, sen., was the chairman. The discussion was adjourned to a meeting next Friday morning. Mr. J. M. Tregaskis, manager end secretary of the company, said the feeling of the meeting was that* further investigation of the proposal should be carried out. £

Buyers. Sellers. £ s. d. £ 3. d. BANKS— Australian of Com. 1 5 0 Australasia — 11 12 f> Com. of Australia . 1 0 1 Ditto (rights) 0 1 1 Ditto (pref.) National of N.Z. . . Nat. of Australasia 6 13 6 6 8 6 (con.) 10 0 New South Wales . 8 38 15 0 New Zealand 3 4 T5 0 Ditto (D mort.) . . i 0 Queensland Nat. . . Union of Australia 35 15 0 S 0 0 INSURANCEAust. Prow Assn. . 0 f) 0 National 0 15 0 New Zealand .. t 0 Queensland 17 0 South British .. .. — 0 0 LOAN AND AGENCT— Dalgety and Co. .. Dominion Invest, and 31 10 0 12 0 0 Bank — 1 0 .9 Ditto (B shares) . — 1 0 0 Farmers’ Co-op. — 4 1 0 Ditto (B. pref.). (ex div. > . . 0 0 ♦ ’.oldsbrouerli, Mort . 1 0 1 10 9 Nat. Mortgage . . . 4 0 Newton King (pref.) 0 11 0 N'.Z. & Itiver Plate 1 10 N.Z. Guar. Corp. . X. Auck. Parmers' 0 8 9 Co-op. ford.) .. .. 0 2 Ditto (B pref.) .. — 0 tl 0 COAT— Hikurangl o 1 r. 0 3 0 Ditto ( pref.> . . . . 4 Ditto (A pref.) .. T ukemiro . . 0 '* 6 13 6 Renown In 6 Ditto (pref.) .. .. 0 <» Ditto (new issue) 0 3 Taupiri l 8 9 N\ aipa . . 0 14 0 Westport — 1 10 0 GAS— Auckland 1 s 0 Ditto (con.) .. .. — 0 18 7 SHIPPING— Devonport Ferry . . 1 2 9 Howard Smith . . . . 1 lt> 0 3 19 0 Northern Steam . . . 0 13 0 14 Ditto (con.) .. .. — 0 7 0 TIMBER— National 0 8 3 0 9 6 Parker-Lamb .. .. BREWERIES— 0 17 6 Ditto (pref.) .. .. N.Z. Breweries 3 1 0 4 l 0 J. Staples — V la 0

Buyers. Sellers. e s. <1. L a. d. MISCELLANEOUS— Australian Glass — 2 0 0 Booth, Macdonald (pref.) — 0 5 0 British Tobacco 0 9 Bycroft. Ltd 1 11 0 Colonial Sugar 4-i 0 0 Dental and Med. Sup. 0 10 0 Dominion Pictures . 1 0 0 Ditto (pref.) .. .. 1 0 0 Electrolytic Zinc (ord.) 1 s G 1 10 0 Ditto (pref.) . . . . 1 10 Farmers’ Trading 0 8 0 8 9 Ditto A (pref.) 0 17 6 Ditto Ft (pref.) 0 13 0 Fullers' Pictures 0 18 0 Gear Meat 1 0 Hayward’s Pictures 0 18 0 H.M. Arcade (pref) 1 0 N.Z. Drug 14 0 Milne and Choyce (deb. stock) .. .. 1 7 9 Morris Fledstroin (pref.) 0 18 0 N.Z. Farmers’ Fert. 1 9 N.Z. Paper Mills 1 1 0 N.Z. Refrigerating . 0. ]0 0 Northern Boot .. .. 0 9 0 Sanford, Ltd 0 16 f> Ditto (pref.) .. .. 1 0 Sharland and Co. .. 1 l 0 Ditto (pref.) 1 l S. R. Maxwell <Sr Co. 0 0 0 :* 0 Taranaki Oilfields.. 0 0 0 4 r, Union Oil 1 0 Whittome. Steveni sons a 0 , W ilsons Cement 1 17 6 1 19 G MINING— Alburnla 0 0 r. 0 1 0 Moanataiari (paid). 0 1 9 0 Ditto (con.) (2s 4d paid) 0 1 0 0 0 1 Ditto (con.) (Is 6c T . paid) 0 l 0 1 9 , Lucky Shot (4s pd.) 0 0 Ohinemuri (ord.) ,. 0 2 G 0 1 G Waihi 0 13 0 0 13 7 ; Waihi Grand June. 0 t 1 0 1 4 Mount Lyell 1 14 3 1 15 0 ,DEBENTURES— Auck. Har. Board, G per cent 101 0 0 Bor Devonport, 6 p.c. 100 0 0 Bor Mt. Ed=n, 6 p.c. lot 0 0 Bor. Hamilton, G p.c. 100 0 0 , W illiamson’s Films 103 0 0 ! Gisborne Sheepfarmers — 94 0 0 !GOVERNMENT BONDS ! War Loan, 1939, 45 99 5 0 — I INSCRIBED STOCKi War Loan. 1938, 45 99 5 0 99 10 0 1 Ditto, 1939, 45 p.c. 100 0 0 Ditto, 1927-4J, 5i 97 15 0 i Ditto, 1933, 5i .. 98 10 0 Ditto, 1U33, 51 .. 9S 10 0 —

On demand. . Buying, s. d. 12 6 prem. Selling, s. d. 40 0 prem 30 days 0 prem. 32 b prem 7 6 dis. 0 prem 90 days .. . 17 6 di.s. 17 6 prem 120 days .. . Telegraphic transfer .. 27 6 dis. -*> 6 prem