FINANCE & MARKETS

Sun (Auckland), Volume IV, Issue 989, 4 June 1930, Page 13

FINANCE & MARKETS

Australian Stocks Improve

Insurance Finn By “Noon Call.” CONSIDERABLE activity is registered in Australian stocks and in many cases at increased figures. Insurance are in demand and sellers are holding for increased figures.

Business on the Auckland Market Transactions on the Auckland market this morning: At the morning early call.—English, Scottish and Australian Bank, £6 10s. At the midday call. —Auckland Gas, £1 4s 7id; Auckland Gas (cont.), 18s. * * * Market at Midday Buyers have improved for Australian Bank of Commerce, sellers scarce. Australasia have improved to buyers, £l2 ss. Commercial of Australia are also slightly firmer with buyers 21s 9d, sellers 22s 3d. E.S. and A. sold this morning at £ 6 10s. New South Wales are firm. New Zealand are unchanged. Many inquiries are registered for shipping shares. Gevonport Ferry are inclfned to firm. Howard Smith are a Bhade firmer. Huddart, Parker are asked for at 375. Northern Steam, both

issues, are in demand. Union Stearr have persistent buyers. In the miscellaneous, Australia! Glass have improved considerably British Tobaccos are firm. Colonia Sugar are asked for at £4l ss. Farmers’ Fertiliser have steady buyeri at 19s 6d. Wilson’s Cement, ex div. have buyers at 43s 3d. * * « Dividends Due Wilsons Cement—final, 5 p.c., bonus, 2J p.c June ■ Bank of N.Z.—final and bonus, 14 1-3 p.c. p.a June 2' Mount Lyell—interim, 5 p.c. .. June 2: Australian Glass—final, ord., 6 p.c.; bonus, 25 p.c.; pref. final, 45 p.c June 2! Farmers’ Trading—ord., 10 p.c. p.a June 2< Faterine Stock Foods—pref.. 5 D.c. p.a June Loan and Mercantile—interim, ord., 2 p.c.; 5 p.c. pref., 25 p.c.; 65 P.c. pref., 3| p.c. .. June

TO-DAY’S QUOTATIONS

Closing Quotations at today's midday call were: —

SHARES FOR PUBLIC AUCKLAND COMPANY TO DEVELOP BUSINESS For tlie purpose of further developing Its activities, the Pyros Laboratories, Ltd., is offering to the public 5,000 ordinary shares and 5,000 8 per cent, cumulative preference shares. This company is now a well established firm in Auckland and is claimed to be the only company in the Dominion producing a complete range of toilet preparations. According to the March issue of the "Chemist and Druggist," "New Zealand comes next to Australia as the world's greatest consumer of toilet preparations a head of population. The present growth of the market should continue for many years to come. Enuring the period that the consumption has increased 150 per cent., the population has increased only 15 per cent. The journal says: Repeated examples during the last few years lead to the conclusion that any manulacturer who cares to take the trouble can build up a very substantial business in New Zealand in the course of 2 very short space of time. In coni'i ' it mav be said that at present this is ’just about the most profitable market in the world. Who will supply the demand?” HUGE BANK SHORTAGE NEW YORK,, May 28. A lawsuit which has been started against a bonding company at Flint. Michigan, marks the final stages of the greatest single embezzlement from the Union Industrial Bank of Film, M A h seven months’ audit showed o. shortage of £750,000, and 12 former officers are serving prison sentences. The bank is suing a surety compan> to make good £600,000 which was lost in the Wall Street panic. LOAN FOR BRISBANE NEW YORK, Monday. A 6 per cent, loan for the City of Brisbane is to be placed on the local market tomorrow by the National City and Lee Higginson Companies. A Sinking fund will be provided to redeem the bonds in 20 years. LONDON BUTTER MARKET Tosenh Nathan and Company have received a cable from their London principals, Trengrouse and Nathan ns follows: —Butter, 1255; cheese, white 765, coloured 82s; both markets slow.

THE FINANCIAL OUTLOOK NEED FOR ECONOMY POSITION ON "CHANGE BY “NOON CALL” Little change Has taken place in the financial outlook during the past week; the most important announcement as far as New Zealand is concerned, has been the review published by the new Minister of Finance, in which he forecasts a big deficit for the current year. those who have followed the position closely the announcement was not unexpected; the natural sequel to curtailment of national income such as has taken place over the past 12 months, without the exercise of economies in public expenditure, could only be a deficit. It has been obvious that administration costs over the past year have tended to increase rather than contract. The most satisfactory feature at the moment is the evident intention of the Government to face facts before it is too late, and to effect economies in every direction where such can be brought into operation ■without causing undue hardship. Although the position is serious, it is not nearly as bad as that facing other at the moment, particularly the Commonwealth Government. The next year or so must of necessity be years of greater economy all round, but a move in that direction is long overdue, and it is good that the trend should have started before the situation developed to a state similar to that which has had to be faced by Australia, where even the Government’s credit standing was questioned in the London market. BRIGHTER FEATURES OF THE MARKET There are several bright features which go a long way toward offsetting the bad. FURTHER REDUCTION Reports from overseas indicate the almost certainty of a further reduction in the Bank of England discount rate to 25 per cent., a level which has never yet failed to see the start of a sustained move toward increased activity in all branches of industry. This trend toward cheaper money is worldwide; in U.S.A., for instance, all the Important regional reserve banks are consistently following the Federal New York Reserve Bank in its move down the scale. Money in the world's principal financial centres is becoming generally easier, and experience of past depressions supports the contention that it is only a question of months before there will be a general, though slow, recovery; cheap money has ever been a great stimulent to industry. POSITION IN AUSTRALIA The position in Australia shows a decided improvement, and this has been registered in the general improvement in the market for souncj industrial shares listed on the Australian Exchanges. With the heavy rains of recent weeks, the sustained improvement in the wool market, and the settlement of the Labour troubles in the coalfields, there has been a decidedly more optimistic tone in reports emanating from across the Tasman the past week or so. It is apparently being realised over there that the situation is not as bad as the more gloomy would had people believe at one stage, and that, by facing facts with practical remedies, the Commonwealth is rich enough in resources to emerge satisfactorily from an even worse position than the one in which she has found herself over the past 12 months N.Z. INVESTMENT MARKET The general trend of prices for sound stocks on the New Zealand investment market over tlie past week has been toward higher levels. Investors who bought four weeks

ago, could, in me try instances, now take worth while profits; Mount Lyells, which were selling down to 26s are now changing hands readily around 29s 6d; Wilsons Cements, a sound Auckland concern, have made the biggest move, advancing just on 6s since the announcement of the results of the company’s year. At the moment there are several worthwhile investments available to the man in the street, and, for those who require easily negotiable stocks which show prospects of market appreciations as times get better, the following have attractions:

BRISBANE WOOL SALES BRISBANE, Tuesday. The June series of wool sales at Brisbane was opened today. There was excellent competition, and the market was very firm. Easily 10 to 15 per cent, better rates ruled than at the April series.

Buyers. Sellers. £ s. d. £ 8. d. banks— Aust of Commerce 5 0 — 12 b 0 Com. of Australia . 1 1 9 1 2 3 Ditto (pref.) .. .. 6 6 0 Tine.. Scot. & Aust. 6 9 0 6 11 0 Nat. of N.Z 6 b 0 Nat. of Australasia lb 0 0 7 10 0 7 14 0 39 0 0 39 lb 0 New Zealand .. .. 2 18 9 2 19 3 Union of Australia . 11 13 0 — insurance — New Zealand .. •• 2 4 6 2 6 0 South British .. .. 2 19 3 3 0 6 LOAN AND AGENCY— farmers' Co-op. Auct. (£1 paid) .. .. Ditto B (pref.) .. —— Goldsbrough, Mort . 1 12 3 — Pom. Invest and Banking Reliance Loan . . .. 5 N.Z. and River Plate N Z. Guar. Corp .. 0 7 6 0 8 0 N Auck. Farmers' Co-op. (ord.) .. .. 0 0 Ditto ( B pref.) .. — 0 9 COAL— Grey Valley 1 3 6 1 6 0 Blkurangi Ditto (pref.) .. .. 4 Pukemiro 15 Ditto (new issue) Tauplrl 5 Ditto (pref.) .. .. Wistport-Stockton . 0 1 — GAS— 1 4 3 1 5 0 Ditto (con.) .. .. 0 17 9 6PIPPING— Devonport Steam .. 1 1 6 1 2 6 Howard Smith 16 — Kuddart-Parker .. 1 17 0 Ditto (pref.) .. .. Ditto (con.) .. .. 0 6 Union Steam (pref.) •— TIMBER— Kauri Timber 0 12 9 0 14 0 Parker-Lamb •• •• Taupo Totara .. .. — Ditto (prefA .*«. — WOOLLEN— Kaiapol (con.) . • .. 0 3 3 — Ditto (pref.) •• •• 0 13 — BREWERIES— C. L. Innes . o «. 1 1 0 — 1 1 N.Z. Breweries 2 11 6 MISCELLANEOUS— Australian Glass 2 2 6 2 5 0 (pref.) 0 19 6 —

Buyers. Sellers. £ s d £ s. d. Booth, McDonald British Tobacco 2 0 6 Burns, Philp .. .. 1 16 0 Bycroft, Ltd Paterin© Foods 1 12 6 — Colonial Sugar .. .. 41 6 0 . Dominion Pictures . 1 0 3 Ditto (pref.) .. .. 1 0 6 Dunlop-Perdriau 0 14 6 Electro. Zinc (ord.) 1 4 9 Ditto (pref.) .. .. 1 7 0 1 8 0 Farmers’ Trading . 0 8 6 0 9 0 Fullers’ Pictures .. 0 14 0 Gear Meat 1 17 0 Hamilton Theatres 0 16 6 Haywards’ Pictures H.M. Arcade Theatre — 0 14 0 (pref.) 1 0 0 N\Z. Drug Milne and Choyce 3 2 6 3 5 6 0 6 (deb. stock) .. .. 1 [National Pictures . „ 0 13 N.Z. Farmers’ Fert. 0 19 6 N.Z. Refrigerating 0 10 0 Ditto (con.) .. .. 0 4 6 Robinson Ice Cream 1 b 6 Sanford, Ltd 0 7 6 0 14 0 Ditto (pref.) .. .. 1 Sharland and Co. . 1 0 3 Taranaki Oil Fields 0 1 6 0 Union Oil 1 16 0 Whittome, Stevensoni 1 J.9 0 Wilsons Cement (ex div.) 2 3 3 — MINING— Alburnia 0 0 2 0 0 4 Moanataiari (paid) 0 1 8 Waihi 0 13 7 0 13 Waihi Grand June.. 0 1 10 Mount Lyell .. .. 1 9 DEBENTURES— 102 10 62 p.c 100 0 0 0 0 96 100 Ditto, 52 p.c. City of Auckland, 98 96 0 0 0 1940, 51 p.c. Ditto, 1936, 51 p.c. 100 99 0 Ditto, 1931, 4 pcBor. Newmarket, 53 100 10 — Booth-Macdonald .. 70 0 86 N.Z. Breweries 1 1 9 — 101 Williamson’s Films — government loans — 99 0 0 — Ditto, 1938, 41 p.c. 98 5 •— Ditto, 1939, 4J p.c. 5 99 10 Ditto, 1936, 51 p.c. ’ INSCRIBED STOCK War Doan, 1938, 41 98 5 0 Ditto, 1939, 41 p.c. 5 «99 0 Ditto. 1932, 51 p.c. U

Approx. Market Price £ s. d. INat. Bank of ’Asia .. .. ..15 5 0 Dalgetv and Company .. 11 10 0 N.Z. Farmers’ Fertilisers .. 0 19 6 Mount Lyell Mining- .. 19 G